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ORDINANCES AND RESOLUTIONS
OF THE
Mayor and City Council
OF BALTIMORE ,
PASSED AT THE ANNUAL SESSION 1980-1981
VOLUME II
Baltimore
20th Century Printing Company, Inc.
City Printers
1981
:^
\ojrii^
ORDINANCES 1121
The Bonds of each series of Bonds issued hereunder shall
mature on such date or dates as may be determined in the
manner hereinafter described, but the last maturity of any
such series of Bonds shall in no event exceed a period of
ten (10) years from the date of such series of Bonds (or
such later date as may be pemiitted under the terms of
the Enabling Legislation in effect on the date of such
series of Bonds).
Sec. 4. Prior to the delivery of any series of Bonds, the
Board of Finance may also adopt a resolution or resolutions
which may prescribe (i) the date of issue of such series
of Bonds, (ii) any additional terms necessary or appro-
priate to reflect any matters provided by resolution and
(iii) such other matters as may be deemed appropriate
by the Board of Finance.
Any resolution or resolutions adopted pursuant to this
section of this ordinance shall be deemed to be of an admin-
istrative nature and shall be efi:ective upon approval by
the Mayor or Acting Mayor of the City.
Sec. 5. And be it further ordained, That, unless other-
wise provided by a resolution of the Board of Finance
adopted upon request of the Developer, the Bonds shall
be sold at private (negotiated) sale as authorized by the
Enabling Legislation, upon the terms and conditions de-
termined by the Board of Finance as hereinafter author-
ized.
Authority is hereby conferred on the Board of Finance
of the City to take all necessary and appropriate actions
on behalf of the City to effect the direct placement of the
Bonds with qualified investors, such actions to include,
but are not limited to, the following :
(1) if the series of the Bonds are sold at private
(negotiated) sale, to determine the date, time and place
when a purchase agreement shall be submitted by the pur-
chasers of the series of the Bonds, such agreement to
specify the interest rate or rates proposed to be paid on
the Bonds of the series, the price at which such series of
the Bonds are to be sold to such purchasers, and such
other matters as the purchasers and the Board of Finance
1122 ORDINANCES Ord. No. 443
may deem necessary or desirable in order to sell and de-
liver the series of the Bonds ;
(2) if the series of the Bonds is to be placed directly
with qualified investors, to specify the conditions under
which the series of the Bonds are to be placed directly
with such qualified investors and to approve the terms of
any commitment for the purchase of the series of the Bonds,
provided, hoicever, that such direct placement and such com-
mitment complies with all applicable securities laws;
(3) to appoint a bank having trust powers, or a trust
company, as trustee for the Bonds to be issued pursuant
to this ordinance, if the Developer requests such appoint-
ment;
(4) to determine the interest rate or rates to be paid
by the City on the Bonds, but only after the Developer shall
have given the City written approval of such interest rate
or rates through the Developer's acceptance of the terms
of any agreement executed and delivered by the City for
the sale of the Bonds or of the terms of any commitment
issued for the purchase of the Bonds; and
(5) in order to insure that each series of the Bonds
is issued without direct cost to the City, to provide for
the payment, directly by the Developer, of all costs, fees
and expenses incurred by or on behalf of the City in con-
nection with the issuance of each series of the Bonds,
such pajTnents to include (without limitation) compensa-
tion to any persons (other than full-time employees of the
City) perfoiTning services by or on behalf of the City in
connection with the transactions contemplated by this
ordinance.
Authority is hereby conferred on the Mayor or Acting
Mayor of the City to take the following actions and to
make the following commitments on behalf of the City:
(a) to execute and deliver a financing agreement by
and between the City and the Developer in the form de-
termined by resolution of the Board of Finance approved
by the flavor or Acting Mayor as authorized by Section 3
of this ordinance; and
(b) to execute and deliver, as a binding and enforce-
able obligation of the City, the purchase agreement for
ORDINANCES 1123
the Bonds by and between the City and the purchasers
of the Bonds and to accomplish any and all actions neces-
sary or deemed appropriate by any of them to issue and
deliver the Bonds to such purchasers in accordance with
the provisions of this ordinance and the purchase agree-
ment.
Sec. 6. And be it further ordained, That, prior to the
sale of any series of Bonds, the Board of Finance of the
City may (without limitation) determine administratively
by resolution or by other appropriate action:
(1) the provisions of trust between the City and the
trustee, if any;
(2) the manner of execution, authentication, registra-
tion and transfer of the Bonds;
(3) provisions for authentication and delivery of the
Bonds;
(4) the provisions of the Financing Agreement between
the City and the Developer and of such other contracts,
agreements or instruments as the Board of Finance of
the City may deem appropriate to effect the financing of
the Facilities;
(5) the terms of the note or other evidence of the
obligation of the Developer issued for each series of Bonds ;
(6) provision for creation, holding and disbursement
of an escrow fund to be held by the trustee ;
(7) provisions for creation, holding and disbursement
of any other funds and accounts to be held by the trustee,
if any;
(8) provisions for the application of receipts and reve-
nues from the City on account of the loan ;
(9) provisions for the security for and investment of
moneys held by the trustee;
(10) the details of the procedure for the redemption
of the Bonds ;
(11) remedies for holders of the Bonds in the event
of default;
1124 ORDINANCES Ord. No. 443
(12) the duties, rights and immunities of the trustee;
(13) the manner of execution of instiniments by holders
of the Bonds and the method of proof of ownership of the
Bonds;
(14) provisions for modification of this ordinance, the
Financing Agreement, and any resolution or other action
of the ]\Iayor, City Council and Board of Finance pertain-
ing to the Bonds;
(15) provisions for defeasance;
(16) the foiTtis of the Bonds, coupons and the tnistee's
authentication certificate ;
(17) provisions for redesignating the Bonds with a
designation different from that given in this ordinance;
and
(18) such other matters in connection ^^ith the author-
ization, issuance, security, sale and pajTtient of the Bonds
as may be deemed appropriate by the Board of Finance.
Any resolution or resolutions adopted pursuant to this
ordinance shall be deemed to be of an administrative nature
and shall be effective upon approval by the I\Iayor or Act-
ing Mayor of the Cit>'.
Sec. 7. And be it further ordained, That the Developer
shall agree that:
(a) It will submit any plans and specifications for the
acquisition of the Facilities to the Department of Housing
and Community Development for approval, with the un-
derstanding that, in addition to the economic feasibility
of the acquisition of the Facilities, the Department of
Housing and Community Development may consider,
without limitation, the suitability of any site plan, archi-
tectural treatment, building plans, elevations, materials,
color construction details, access, parking, loading, land-
scaping, identification signs, exterior lighting, refuse col-
lection details, streets, sidewalks, and harmony between
the plans and the surroundings of the proposed Facilities
and that the Department of Housing and Community De-
velopment may refuse approval of any such plans and
specifications for aesthetic or functional reasons; and
ORDIXANXES 1125
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 8. A72d be it further ordained, That if the Bonds
are not issued and sold within six months from the date
on which this ordinance is approved by the Mayor or
Acting Mayor of the City, the authorization provided in
this ordinance for the City to issue and sell the Bonds
shall expire; provided however, that the Board of Finance
of the City may. after a showing of good cause at a public
hearing held before the Board of Finance, extend such
authorization for one additional term not to exceed six
months. The Board of Finance, in its sole discretion, shall
determine the sufficiency, or lack thereof, of the reasons
presented for any requested extension of this ordinance.
If an extension is granted, notice of such extension and the
reasons therefor shall be sent to the City Council.
Sec. 9. And he it further ordained, That the provisions
of this ordinance are severable, and if any provision, sen-
tence, clause, section or part thereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidit^^ or unconstitution-
ality, or inapplicability shall not affect or impair any of
the rem^aining provisions, sentences, clauses, sections or
parts of the ordinance or their application to other persons
or circumstances. It is hereby declared to be the legislative
intent that this ordinance would have been adopted if such
illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included therein, as if
the person or circumstances to which the ordinance or
any part thereof is inapplicable had been specifically ex-
empted therefrom.
Sec. 10. And he it further ordained. That this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
T^TLLIAM DONALD SCHAEFER, Mayor.
1126 ORDINANCES Ord. Xo. 444
No. 444
(Council No. 817)
AN ORDINANCE concerning
ISSUANCE OF INDUSTRIAL DEVELOPMENT
REVENUE BONDS— AIR PRODUCTS
AND CHEMICALS, INC.
FOR the purpose of authorizing and empowering the
Mayor and Cit>^ Council of Baltimore to issue, sell and
deliver, pursuant to the provisions of Subsection (50)
of Article II of the Charter of Baltimore City, at any
time or from time to time, its Industrial Development
Revenue Bonds, designated ''Baltimore City, Maryland
Industrial Development Revenue Bonds (Air Products
and Chemicals, Inc. Project), Series A", in an aggre-
gate principal amount not to exceed $4,000,000, in order
to loan the proceeds thereof to Air Products and Chemi-
cals, Inc., a Delaware corporation, for the sole and ex-
clusive purpose of financing the acquisition and con-
struction of a certain industrial project in Baltimore
City, including certain equipment; authorizing and em-
powering the Mayor and City Council of Baltimore to
issue, sell and deliver its Industrial Development Reve-
nue Bonds, designated "Baltimore City, Maryland Indus-
trial Development Revenue Bonds (Air Products and
Chemicals, Inc. Project), Series B", in an aggregate
principal amount not to exceed 84,000,000 to refund the
Series A Bonds upon redemption thereof; authorizing
the Mayor of the City to accept, on behalf of the City, the
Borrower's letter of intent to the City dated March 24,
1980; making certain legislative findings, among others,
concerning the public benefit and purpose of such bonds;
authorizing the private (negotiated) sale of such bonds;
authorizing and empowering the Board of Finance of
the City, prior to the issuance, sale and delivery of any
such bonds, to adopt a resolution pursuant to which the
Board may specify, prescribe, determine, provide for
and approve certain matters, details, documents and
procedures in connection with the authorization, issu-
ance, sale and payment for such bonds; and generally
providing for and determining various matters and de-
ORDINANCES 1127
tails in connection with the authorization, issuance, se-
curity, sale and payment of such bonds.
RECITALS
Subsection (50) of Article II of the Charter of Bal-
timore City (the ^'Charter") empowers the Mayor and
City Council of Baltimore City (the "City") to issue
revenue bonds and to loan the proceeds of the sale of
such revenue bonds to a private concern to finance the
acquisition and construction by such concern of an
industrial or commercial project and thereby help relieve
conditions of unemployment in the City, encourage
the increase of industry and a balanced economy, assist
in the retention of existing industry, promote economic
development, and in this manner promote the health,
welfare and safety of the residents of the City.
The City has received a letter of intent dated March
24, 1980 (the ^'Letter of Intent") from Air Products
and Chemicals, Inc., a Delaware corporation (the "Bor-
rower"), pursuant to which the Borrower has requested
the City to participate in the financing of the acquisi-
tion and construction by the Borrower of an industrial
project, including certain equipment, to be located in
the City (the "Project"), by the issuance and sale by
the City of its Baltimore City, Maryland Industrial
Development Revenue Bonds (Air Products and Chemi-
cals, Inc. Project), Series A, in an aggregate principal
amount not to exceed $4,000,000 (the "Series A Bonds"),
and by loaning the proceeds of such Series A Bonds to
the Borrower upon the terms and conditions set forth
in a loan agreement (the "Loan Agreement") to be
entered into between the City and Borrower (such loan
being herein referred to as the "Loan").
The Project referred to herein consists of a steam
hydrocarbon reforming plant which will convert pro-
pane into hydrogen and carbon monoxide and will have
a shift converter to convert carbon monoxide into water
and carbon dioxide, includes related equipment and im-
provements, and will be constructed and installed at the
site of the plant of FMC Corporation located on Patapsco
Avenue in the Curtis Bay Section of the City.
1128 ORDINANCES Ord. No. 444
The City has been advised by the Borrower that the
terms of the Series A Bonds may provide for redemp-
tion on short notice at the option of the holder and,
under such circumstances, it vv^ould be desirable to au-
thorize additional bonds to be issued by the City only
upon such optional redemption in order to provide funds
required therefor. In furtherance of such purpose, the
City may authorize the issuance and sale of its Balti-
more City, Maryland Industrial Development Revenue
Bonds (Air Products and Chemicals, Inc. Project),
Series B, in an aggregate principal amount not to exceed
$4,000,000 ("Series B Bonds" and, collectively with the
Series A Bonds, the ''Bonds"), the proceeds of such
Series B Bonds to be applied immediately to the re-
demption of the Series A Bonds.
The Loan Agreement will require the Borrower (a)
to use the proceeds of the Series A Bonds solely to
finance the acquisition and construction of the Project,
and (b) to make Loan pajrments which will be sufficient
to enable the City to pay the principal of and interest
and premium, if any, on the Bonds when and as the
same shall become due and payable. The proceeds of
the Series A Bonds shall be used solely to pay costs of
acquisition and construction of the Project, to pay fi-
nancing costs and to pay interest on the Series A Bonds
during acquisition and construction of the Project.
As security for the Bonds, the City will enter into
a Trust Indenture (the ''Indenture") with a trustee
(which may be the original purchaser of the Series A
Bonds or a bank committing to purchase the Series B
Bonds) (the "Trustee"). Pursuant to the Indenture, the
City will assign to the Trustee, its successors and as-
signs (a) all of the City's right, title and interest in
and to any remedies under the Loan Agreement, ex-
cepting only the right of the City to indemnification
by the Borrower and to payments to the City for ex-
penses incurred by the City itself, (b) the receipts and
revenues of the City from the Loan, and (c) certain
moneys which are at any time or from time to time on
deposit with the Trustee.
The Loan Agreement, the Indenture and other agree-
ments to be executed and delivered by the City in con-
ORDINANCES 1129
nection with the issuance and sale of the Bonds shall be
approved by the Board of Finance of the City (the
**Board") by a resolution (the ''Resolution") to be
adopted by the Board prior to the issuance, sale and
delivery of any of the Bonds.
The Bonds will be sold by private (negotiated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
CHARTER :
'Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to Subsection (50) of
Article II of the Charter, it is hereby found and determined
as follows:
(1) The issuance and sale of the Series A Bonds by
the City in order to lend the proceeds thereof to the Bor-
rower for the sole and exclusive purpose of financing the
acquisition and construction by the Borrower of the Project
will facilitate and expedite the acquisition and construction
of the Project by the Borrower.
(2) The authorization of and potential issuance of the
Series B Bonds by the City in order to refund the Series A
Bonds upon exercise by the holder thereof of its right to
demand redemption thereof will facilitate and expedite the
issuance and sale of the Series A Bonds.
(3) The acquisition and construction of the Project by
the Borrower and the financing thereof as provided in this
Ordinance will (a) create jobs and employment, thus re-
lieving conditions of unemployment in the City; (b) en-
'courage the increase of industry and the creation of a
balanced economy in the City; (c) assist in the retention
of existing industry in the City; (d) promote economic
development; and (e) thereby promote the health, welfare
and safety of the residents of the City.
(4) It is in the best interests of the citizens of the
City to finance the acquisition and construction of the
Project by a loan to the Borrower. This Ordinance con-
templates and authorizes a transaction in the foim of a
loan of the proceeds of the Series A Bonds by the City to
the Borrower, rather than a transaction in the form of
a lease or sale of the Project. Accordingly, this Ordinance,
1130 ORDINANCES Ord. No. 444
together with the Resolution, the Indenture and the Loan
Agreement authorized hereby, and the other documents
referred to herein, contain, or shall contain, such provi-
sions as the City deems appropriate to effect the financing
of the acquisition and construction by the Borrower of the
Project by the loan form of transaction.
(5) Neither the Bonds nor the interest thereon shall
ever constitute an indebtedness or general obligation of the
City or a charge against, or pledge of the general credit or
taxing powers of the City, within the meaning of any con-
stitutional or charter provision or statutory limitation, and
neither shall ever constitute or give rise to any pecuniary
liability of the City. The Bonds and the interest thereon
shall be limited obligations of the City, repayable by the
City solely from the revenue derived from Loan repay-
ments (both principal and interest) made to the City by
the Borrower on account of the Loan and from any other
moneys made available to the City for such purpose. The
proceeds of the Bonds will be paid directly to the Trustee
to be held and disbursed by the Trustee as provided in the
Indenture to be approved by the Board in the Resolution.
Payments of the receipts and revenues of the City from
the Loan will be paid by the Borrower directly to the
Trustee to be used and applied for the pa>Tnent of the
principal of and premium (if any) and interest on the
Bonds, as provided in the Indenture to be approved by the
Board in the Resolution. No such moneys will be com-
mingled with the City's funds or will be subject to the
absolute control of the City, but ^vill be subject only to
such limited supervision and checks as are deemed neces-
sary or desirable by the City to insure that the proceeds
of the Bonds are used to accomplish the public purposes
of the Charter and this Ordinance.
(6) The City will acquire no interest in the Project.
The security for the Bonds shall be solely and exclusively
the absolute, irrevocable and unconditional obligations of
the Borrower to make the pa>Tnents required by the Loan
Agreement.
(7) The best interests of the City wall be served by
selling the Bonds by private (negotiated) sale upon terms
and conditions approved by the Board.
ORDINANCES 1131
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue, sell and deliver,
at any time or from time to time, the Series A Bonds in
an aggregate principal amount not to exceed $4,000,000
subject to the provisions of this Ordinance. The proceeds
of the Series A Bonds will be loaned to the Borrower
pursuant to the terms and provisions of the Loan Agree-
ment, to be used by the Borrower for the sole and exclu-
sive purpose of financing the acquisition and construction
of the Project, including payment of necessary financing
expenses and interest on the Series A Bonds during con-
struction.
Sec. 3. And be it further ordained, That the City is
hereby authorized and empowered to issue, sell and deliver
the Series B Bonds in an aggregate principal amount not
to exceed $4,000,000 subject to the provisions of this Ordi-
nance. The Series B bonds will be issued only upon redemp-
tion of the Series A Bonds, and the proceeds of the Series
B Bonds will be paid to the Trustee and applied solely to
the redemption of the Series A Bonds.
Sec. 4. And be it further ordained, That the Bonds and
the interest thereon shall be limited obligations of the City,
repayable by the City solely from the revenue derived from
Loan repayments (both principal and interest) made to
the City by the Borrower pursuant to the Loan Agreement
and from any other moneys made available to the City
for such purpose. The security for the Bonds shall be solely
and exclusively as provided in Section 1 of this Ordinance.
Sec. 5. And be it further ordained, That the Mayor of
the City is hereby authorized and directed to accept the
Letter of Intent on behalf of the City in order to further
evidence the binding commitment of the City to issue, sell
and deliver the Bonds in accordance with the terms and
provisions of this Ordinance. This Ordinance is intended
to be, and shall constitute, a binding and enforceable
commitment by the City to the Borrower to issue and de-
liver the Bonds authorized hereby in accordance with the
terms hereof; however, the City can make no assurances
as to the availability of a ready, willing and able purchaser
of the Bonds, and the City will have no obligation to find
1132 ORDINANCES Ord. No. 444
a purchaser for the Bonds. The City and the Borrower
contemplate that upon the enactment of this Ordinance by
the City the Borrower may proceed with the acquisition
of the Project prior to the issuance, sale and delivery of
the Bonds authorized hereby.
Sec. 6. And be it further ordained, That each of the
Bonds shall bear the descriptive title ''Baltimore City,
Maryland Industrial Development Revenue Bond (Air
Products and Chemicals, Inc. Project)", provided that the
descriptive title shall contain such other descriptive infor-
mation as the Board may prescribe in the Resolution (e.g.
"Series A" or ''Series B"). The Bonds shall bear interest,
payable semiannually or more frequently as the purchaser
thereof may require, at a fixed rate of interest, as pre-
scribed by the Board in the Resolution, or at a floating
rate, the formula for which shall be prescribed by the
Board in the Resolution, and may contain provisions per-
mitting conversion of the floating rate to a fixed rate, which
fixed rate shall be determined with reference to a formula
prescribed by the Board. The Bonds may contain provisions
for alternative rates in excess of those prescribed above
during any period in which interest on the Bonds is in-
cluded in the gross income of any holder thereof.
Sec. 7. And he it fiirther ordained, That the Bonds shall
be executed in the name of the City and on its behalf by
the Mayor of the City by his manual or facsimile signa-
ture and by the Director of Finance of the City by his
manual or facsimile signature, and the corporate seal of
the City or a facsimile thereof shall be impressed or other-
wise reproduced thereon and attested by the Custodian
of the City Seal by his manual signature. The Loan Agree-
ment, the Indenture and, where applicable, all other docu-
ments as may be necessary to effectuate the issuance, sale
and delivery of the Bonds, shall be executed in the name
of the City and on its behalf by the Mayor of the City by
his manual or facsimile signature, and the corporate seal
of the City or a facsimile thereof shall be impressed or
otherwise reproduced thereon and attested by the Cus-
todian of the City Seal by his manual signature. In case
any officer whose signature or a facsimile of whose sig-
nature shall appear on the Bonds or any of the aforesaid
ORDINANCES 1133
documents shall cease to be such officer before the de-
livery of the Bonds or any of the other aforesaid docu-
ments, such signature or such facsimile shall nevertheless
be valid and sufficient for all purposes, the same as if
such officer had remained in office until delivery. The
Mayor of the City, the Director of Finance of the City,
the Custodian of the City Seal and other officials of the
City are hereby authorized and empov^ered to do all such
acts and things and execute such documents and certifi-
cates as the Board may determine in the Resolution to be
necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained. That the Bonds shall
be executed, issued and delivered at any time or from time
to time and in such amount or amounts not exceeding, in
the aggregate, the amounts herein set forth, as the Board
shall prescribe in the Resolution.
Sec. 9. And be it further ordained, That the Bonds may
be dated, may be in such denominations, may be of such
tenor, may be payable in such amounts at such times not
exceeding 30 years from the date thereof and at such place
or places and may contain such provisions for optional
and mandatory redemption, in whole or in part, as the
Board shall prescribe in the Resolution.
Sec. 10. And be it further ordained, That prior to the
issuance, sale and delivery of any of the Bonds, the Board
shall adopt the Resolution pursuant to which the Board
may:
(a) prescribe the final form, tenor, terms and condi-
tions of and security for the Bonds ;
(b) prescribe the actual amounts, rate or rates of
interest or method of computing the rate or rates of in-
terest (within the limits herein prescribed), denomina-
tions, date, actual maturity or maturities (within the
limits herein prescribed), and the place or places of pay-
ment of the Bonds, and the final terms and conditions and
details under which the Bonds may be called for redemp-
tion prior to their stated maturity ;
1134 ORDINANCES Ord. No. 444
(c) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Indenture, and (iii) such other docu-
ments as the Board shall deem necessary to effectuate the
issuance, sale and delivery of the Bonds ;
(d) determine the time or times of execution, issuance,
sale and delivery of the Bonds and prescribe any and all
other details of the Bonds ;
(e) provide for the direct payment by the Borrower
of all costs, fees and expenses incurred by or on behalf
of the City in connection with the issuance, sale and de-
livery of the Bonds, including (without limitation) costs
of printing (if any) and issuing the Bonds, legal expenses
(including the fees of Bond Counsel) and compensation to
any person (other than employees of the City) performing
services by or on behalf of the City in connection there-
with; and
(f) do any and all things, and authorize the officials
of the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and de-
livery of the Bonds.
Sec. 11. And be it further ordained, That the Loan
Agreement shall contain such terms, provisions and con-
ditions as the Board shall prescribe in the Resolution.
Sec. 12. And he it further ordained, That the Indenture
shall contain such terms, provisions and conditions as
the Board shall prescribe in the Resolution for the pro-
tection and enforcement of the rights and remedies of the
holders of the Bonds.
Sec. 13. And he it further ordained, That the Bonds shall
be sold by private (negotiated) sale upon such terms and
conditions as shall be approved by the Board in the
Resolution.
Sec. 14. And he it further ordained, That neither the
Bonds nor the interest thereon shall ever constitute an
indebtedness or general obligation of the City or a charge
against the general credit or taxing powers of the City
ORDINANCES 1135
within the meaning of any constitutional or charter pro-
vision or statutory limitation, and neither shall ever con-
stitute or give rise to any pecuniary liability on the part
of the City. The Bonds, and the interest thereon, shall be
limited obligations of the City, the principal of and inter-
est on which Bonds shall be payable by the City solely
from the revenue derived from Loan repayments (both
principal and interest) made to the City by the Borrower
on account of the Loan and, to the extent provided by the
Board in the Resolution, from the proceeds of the Bonds,
and from any other moneys made available to the City for
such purpose. The proceeds of the Bonds will be deposited
with the Trustee to be held and disbursed by the Trustee
as provided in the Indenture. Payments of the receipts and
revenues of the City from the Loan will be paid by the
Borrower directly to the Trustee to be used and applied
for the payment of the principal of and premium (if any)
and interest on the Bonds. No such moneys will be com-
mingled with the City's funds or will be subject only to
such limited supervision and checks as are deemed neces-
sary or desirable by the City to insure that the proceeds of
the Bonds are used to accomplish the public purposes of
this Ordinance.
Sec. 15. And be it further ordained, That in considera-
tion of the purchase and acceptance of the Bonds by those
who shall hold the Bonds from time to time, the City does
hereby, and by the execution and delivery of the Indenture
shall, pledge the receipts and revenues under the Loan
Agreement (other than pajrments to the City for indem-
nification or to reimburse the City for expenses incurred
by the City itself) to the Trustee, its successors and as-
signs, to be used and applied for the payment of the prin-
cipal of and premium (if any) and interest on the Bonds.
Sec. 16. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitution-
ality, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections or
parts of this Ordinance or their application to other per-
1136 ORDINANCES Ord. No. 445
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
and if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 17. And he it further ordained, That if the Bonds
are not issued and sold within six months from the date
on which this Ordinance is approved by the Mayor of the
City, the authorization provided in this Ordinance for the
City to issue and sell the Bonds shall expire; provided
however, that the Board of Finance of the City may, after
a showing of good cause at a public hearing held before
the Board of Finance, extend such authorization for an
additional tenn not to exceed six months. The Board of
Finance, in its sole discretion shall determine the suffi-
ciency, or lack thereof, of the reasons presented for any
I'equested extension of this Ordinance. If any extension is
granted, notice of such extension and the reasons therefor
must be sent to the City Council.
Sec. 18. And he it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 445
(Council No. 818)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE
BONDS— (FOODARAMA GROUP, INC.
PROJECT) SERIES B
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
ORDINANCES 1137
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
$2,000,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
(1964 Revision), as amended, for the sole and exclusive
purpose of financing the costs of the acquisition by
Foodarama Group, Inc., a Maryland corporation, and/or
a joint venture of which it is a joint venture partner
of a certain project in Baltimore City consisting of the
acquisition of the fee interest in certain real property
and improvements thereon located at 5315 York Road
and 4210 Frankfort Avenue, all in Baltimore City to be
used and operated as retail food stores, the renovation
of such buildings, and the purchase of certain machinery
and equipment and other improvements therein, to be
owned and used by Foodarama Group, Inc. and/or a
joint venture of which it is a joint venture partner au-
thorizing the Mayor of the City, on behalf of the City,
to accept a letter of intent dated October 9, 1981 from
Foodarama Group, Inc. to the City; making certain
legislative findings; authorizing and empowering the
Board of Finance of the City, by a resolution or reso-
lutions adopted prior to the issuance, sale and delivery
of any series of such bonds, to (a) prescribe, among
other things but not limited to, the form, terms, provi-
sions, manner or method of issuing and selling (in-
cluding negotiated as well as competitive bid sale), and
the time or times of issuance, and any and all other
details of such bonds, and (b) do any and all things
necessary, proper or expedient in connection with the
issuance and sale of such bonds; providing that Food-
arama Group, Inc. shall agree to submit any plans and
specifications to, and to coordinate with, the Department
of Housing and Community Development in connection
with the completion of such project; providing that
such bonds must be issued and sold within six months
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one six month
extension as provided in this Ordinance; and generally
providing for and determining various matters and
details in connection with the issuance and sale of such
bonds.
1138 ORDINANCES Ord. No. 445
RECITALS
Sub-section (50) of Article II of the Charter of Bal-
timore City (1964 Revision), as amended (the **En-
abling Law"), empowers Mayor and City Council of
Baltimore (the **(jity") to borrow money to finance
undertaking's for the accomplishment of any of the pur-
poses, objects and powers of the City and in connection
therewith to issue bonds, notes, or other obligations
(including refunding bonds, notes or other obligations),
all of which shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in con-
nection with the property, facilities, developments and
improvements whose financing is undertaken by the
issuance of such bonds, notes or other obligations, (II)
the revenues from or arising in connection with any
contracts, mortgages, or other securities purchased or
otherwise acquired with the proceeds of such bonds,
notes or other obligations, (III) the contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations, or (IV) any combination of (I), (II) or
(III). The purposes, objects and powers of the City
contemplated by the Enabling Law include the relief
of conditions of unemployment in Baltimore City, en-
couraging the increase of industry and a balanced econ-
omy in Baltimore City, promoting economic development
in Baltimore City, and promoting the health, welfare and
safety of the residents of Baltimore City.
The City has received a letter of intent dated October
9, 1981 (the ''Letter of Intent") from Foodarama Group,
Inc., a Maryland corporation (the ''Borrower"), pur-
suant to which the Borrower has requested the City to
participate in the financing of the costs of the acquisi-
tion by the Borrower of a certain project in Baltimore
City, Maryland (the "Project"), by issuing and selling
the City's industrial development revenue bonds in the
aggregate principal amount not to exceed $2,000,000
(the "Bonds"), and by loaning the proceeds of the Bonds
to the Borrower, upon the terms and conditions of an
Industrial Building Financing Agreement to be entered
into, among others, the City and the Borrower (the
ORDINANCES 1139
"Financing Agreement**), as permitted by the Enabling
Law (such loan being herein referred to as the "Loan"),
to be used by the Borrower for the sole and exclusive
purpose of financing the costs of the acquisition of the
Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition of fee interests in real property
and the improvements thereon located at 5315 York
Road and 4210 Frankfort Avenue, all in Baltimore City,
(b) the acquisition of such machinery and equipment,
and any and all other improvements as may be neces-
sary or useful in connection with the operation thereof,
and (c) the acquisition of other interests in land as
may be necessary or suitable for the foregoing, in-
cluding roads and rights of access, utilities and other
necessary site preparation. Upon completion, the Project
will be owned by the Borrower and/or a joint venture
of which the Borrower is a joint venture partner for use
as retail food stores.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City
(the "Board") by resolution to determine and set forth
the form, terms, provisions, manner or method of issu-
ing and selling (including negotiated as well as com-
petitive bid sale), and the time or times of issuance,
and any and all other details of the Bonds and the
issuance and sale thereof, and to do any and all things
necessary, proper or expedient in connection with the
issuance and sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That enacting pursuant to the Enabling Law,
it is hereby found and determined as follows:
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to lend the pro-
ceeds thereof to the Borrower for the sole and exclusive
purpose of financing the costs of acquisition of the Project
1140 ORDINANCES Ord. No. 445
will facilitate and expedite the acquisition of the Project
by the Borrower.
(2) The acquisition of the Project by the Borrower
and the financing of the costs of such acquisition as pro-
vided in the Ordinance will serve to promote the general
purposes contemplated by the Enabling Law by (a) sus-
taining jobs and employment in Baltimore City; (b) pro-
moting economic development in Baltimore City; and (c)
encouraging the increase of industry and a balanced econ-
omy in Baltimore City.
(3) Any and all of the Bonds and the interest thereon
shall not be general obligations of the City and shall not
be a pledge of or involve the faith and credit or the taxing
power of the City, and shall not constitute a debt of the
City, all within the meaning of Section 7 of Article XI
of the Constitution of Maryland or within the meaning of
any other constitutional, statutory or charter provision
limiting or restricting the sale or issuance of bonds, notes
or other obligations of the City, and shall be fully nego-
tiable, payable, as to both principal and interest, solely
from and secured solely by a pledge of the revenue derived
from Loan repayments (both principal and interest) made
to the City by the Borrower on account of the Loan and
from any other moneys made available to the City for such
purpose, all as the Board may approve by a resolution or
resolutions adopted prior to the issuance, sale and delivery
of the Bonds. The proceeds of the revenue bonds will be
paid directly to a corporate trustee (to be appointed by the
Board) or a project fund trustee (which may be the
original purchaser of the Bonds), to be held and disbursed
by such trustee or project fund trustee as provided in the
Financing Agreement, to be approved by the Board in the
Resolution ; provided, however, that if the Board finds and
determines, pursuant to the Resolution, that the Project
will be completed on or before the date of delivery of the
'Bonds, the Board may provide in the Resolution that the
proceeds of the Bonds will be paid directly to the Borrower,
or for the account of the Borrower, to be used by the
Borrower to pay the costs of, or to reimburse the Borrower
for the payment of the costs of, the acquisition of the
Project, as provided in the Financing Agreement to be
approved by the Board in the Resolution. Payments of the
ORDINANCES 1141
principal of and premium (if any) and interest on the
Loan will be paid by the Borrower directly to such trustee
or to the original purchaser of the Bonds, its successors
and assigns, as provided in the Financing Agreement, to
be approved by the Board in the Resolution. No such moneys
will be commingled with the City's funds or will be subject
to the absolute control of the City, but will be subject
only to such limited supervision and checks as are deemed
necessary or desirable by the City to insure that the pro-
ceeds of the Bonds are used to accomplish the public pur-
poses of the Enabling Law and this Ordinance. The loan
form of transaction authorized hereunder shall in no event
constitute a capital project within the meaning of any
charter or statutory provision. The public purposes ex-
pressed in the Enabling Law are to be achieved by facili-
tating the acquisition of the Project by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's
property shared by all holders of the Borrower's obliga-
tions which rank and are secured equally with the Bor-
rower's obligations pursuant to the Financing Agreement,
(b) any lien and security interest created by the Financing
Agreement, and (c) any interest created by any other
mortgage or deed of trust or other security instrument
executed and delivered by the Borrower or any third
party as security for the Loan or the Bonds as the Board
may provide for and approve in the Resolution. The
security for the Bonds shall be solely and exclusively (a)
the absolute, irrevocable and unconditional obligations of
the Borrower to make the pajmients required by the Fi-
nancing Agreement, (b) moneys realized from the liquida-
tion of any lien and security interest created by the Fi-
nancing Agreement and of any other lien or security
interest created with respect to any property as security
for the Loan or the Bonds as the Board may provide for
and approve in the Resolution, and (c) moneys realized
from any guaranty of the Bonds or of the Loan as the
Board may provide for and approve in the Resolution.
'(5) The best interests of the City will be served by
selling the Bonds at private (negotiated) sale, as author-
ized by the Enabling Law, upon terms and conditions ap-
proved by the Board in the Resolution.
1142 ORDINANCES Ord. No. 445
Sec. 2. Aiid be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $2,000,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be loaned to the Borrower under terms
and conditions approved by the Board and set forth in a
Resolution, and used by the Borrower for the sole and
exclusive purpose of financing the costs of the acquisition
of the Project.
Sec. 3. And be it further ordained, That each of the
Bonds shall bear the descriptive title "Baltimore City,
Maryland Industrial Development Revenue Bonds (Food-
arama Group, Inc. Project) Series B", provided, that the
descriptive title may contain such other descriptive in-
foiTnation as the Board may prescribe in the Resolution.
The Bonds shall bear interest at the rate or rates of in-
terest to be determined by negotiation with the original
purchaser or purchasers of the Bonds and to be approved
and prescribed by the Board in the Resolution.
Sec. 4. And be it further ordained. That the definitive
Bonds, which may be engraved, printed or typewritten,
including a Certificate of Authentication to be endorsed
thereon, if required by the Financing Agreement, shall be
in such form, not inconsistent with the Enabling Law and
the provisions of this Ordinance, as the Board may ap-
prove in the Resolution.
Sec. 5. And be it further ordained. That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to fur-
ther evidence the present intent of the City to issue the
Bonds in accordance with the ternis and provisions of
this Ordinance.
Sec. 6. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
ORDINANCES 1143
empowered, by a resolution or resolutions adopted prior
to the issuance, sale and delivery of any of the Bonds, to:
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 1 of this Ordi-
nance, pursuant to the Financing Agreement, (ii) the
form of the Financing Agreement, as provided in the Ena-
bling Law, and (iii) such provisions in the Financing
Agreement as the Board may deem reasonable and proper
for the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of the Bonds will be loaned to the
Borrower to finance the costs of the acquisition of the
Project; and
(d) do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and deliveiy of
the Bonds.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory" or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City. All of the Bonds shall be limited
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of the revenue derived from
Loan repayments (both principal and interest) made to
the City by the Borrower pursuant to the Financing Agree-
ment and from any other monej'S made available to the
1144 ORDINANCES Ord. No. 445
City for such purpose, all as the Board maj^ approve
by a resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 8. Aiid be it further ordained, That the Borrower
shall agree that :
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 9. And he it further ordained. That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian of the Cit>^ Seal, by his manual signature.
Any trust agreement or other documents as the Board
shall deem necessarv to effectuate the issuance, sale and
deMve>^^ of the Bond^ shaU be executed in the np^e of
the City and on its behalf by the Mayor of the City by
his manual or facsimile signature, and the corporate seal
of the City or a facsimile thereof shall be impressed or
otherwise reproduced thereon and attested by the Custo-
dian of the City Seal by his manual signature. In case
any officer whose signature or a facsimile of whose sig-
nature shall aD^^env on the Bonds or anv of the aforesaid
documents shall cease to be such officer before the delivery
of the Bonds or any of the other aforesaid documents,
such signature or such facsimile shall nevertheless be valid
and sufficient for all purposes, the same as if such officer
had remained in office until delivery. The Mayor of the
City, the Director of Finance of the City, the Custodian
of the City Seal and other officials of the City are hereby
ORDINANCES 1145
authorized and empowered to do all such acts and thing's
and execute such documents and certificates as the Board
may determine by resolution to be necessary to carry out
and comply with the provisions hereof.
Sec. 10. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of the
City or by the Chief, Bureau of Treasury Management of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 11. And be it further ordained. That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitution-
ality, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the
legislative intent that this Ordinance would have been
passed if such illegal, invalid or unconstitutional provision,
sentence, clause, section or part had not been included
herein, and if the person or circumstances to which this
Ordinance or any part hereof are inapplicable had been
specifically exempted herefrom.
Sec. 12. And be it further ordained, That the Bonds
must be issued and sold within six months from the date
on which this Ordinance is approved by the Mayor of the
City; provided, however, that the Board, after a showing
of good cause at a public hearing held before the Board
prior to or after the expiration of such six month period,
may extend the period during which the Bonds may be
issued and sold for one additional term not to exceed six
months from the date on which the first six mxonth period
expired. The Board, in its sole discretion, and without
action by the City Council, shall determine the sufficiency,
or lack thereof, of the reasons presented for any requested
extension of the six month period. If an extension is
1146 ORDINANCES Ord. No. 446
granted, notice of such extension and the reasons therefor
must be sent to the City Council. To the extent that the
Bonds are not issued and sold within twelve months from
the date on which this Ordinance is approved by the Mayor
of the City, the authority provided in this Ordinance for
the City to issue and sell the Bonds shall expire.
Sec. 13. And be it fuy^ther ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
No. 446
(Council No. 819)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS—
(1319-23 N. CHARLES PROJECT)
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore (the ''City") to issue and
sell, at any time or from time to time and in one or
more series, as limited obligations of the City and not
upon its full faith and credit, its industrial develop-
ment revenue bonds, to be designated ''Baltimore City,
Maryland Industrial Development Revenue Bonds (1319-
23 N. Charles Project)", in the aggregate principal
amount not to exceed $1,000,000, pursuant to the pro-
visions of Sub-section (50) of Article II of the Charter
of Baltimore City (1964 Revision), as amended, for the
sole and exclusive purposes of financing the costs, charges,
fees and expenses in connection with the acquisition,
improvement and renovation of the property situate at
1319-23 N. Charles Street, and certain improvements in
connection therewith, to be operated and/or leased to
others to be operated, as a restaurant, office, and apart-
ment facility by G.A.D. Limited Partnership, a Mary-
land limited partnership, including pajment of the neces-
ORDINANCES 1147
sary expenses of preparing, printing and selling such
bonds and payment of interest on such bonds during the
period of leasing and acquisition of such property (such
period not to exceed three years following the date of
such bonds) ; authorizing the Mayor of the City to
accept, on behalf of the City, a letter of intent from
G.A.D. Limited Partnership addressed to the City dated
October 9, 1981; making certain legislative findings;
authorizing and empowering the Board of Finance of
the City, prior to the issuance, sale and delivery of such
bonds, to adopt a resolution pursuant to which the
Board of Finance of the City shall (a) prescribe, among
other things but not limited to, the form, terms, pro-
visions, manner or method of issuing, selling and de-
livering, and the time or times of issuance, and any
and all other details of such bonds, and (b) do any
and all things necessary, proper or expedient in con-
nection with the issuance, sale and delivery of such
bonds; authorizing the private (negotiated) sale of such
bonds; providing that G.A.D. Limited Partnership shall
agree to submit any plans and specifications to, and to
coordinate with, the Department of Housing and Com-
munity Development in connection with the acquisition
and installment of such project; providing for the ex-
piration of the authorization of the transaction approved
by this Ordinance, if such bonds are not issued and
sold within six months from the date this Ordinance
is approved by the Mayor, unless the authorization is
extended by the Board of Finance as provided in this
Ordinance; and generally providing for and determining
various matters and details in connection with the au-
thorization, issuance, security, sale, delivery and pay-
ment of such bonds.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended (the "Enabling
Law"), empowers Mayor and City Council of Balti-
more (the ''City") to issue, sell and deliver revenue
bonds and to use the proceeds of the sale of such revenue
bonds to finance undertakings for the accomplishment
of any of the purposes, objects and powers of the City.
1148 ORDINANCES Ord. No. 44G
Some of the general objectives of the City, contem-
plated by the Enabling Law, include the relief of con-
ditions of unemplo\Tnent in Baltimore City, encouraging
the increase of industry and a balanced economy in
Baltimore City, promoting economic development in Bal-
timore City, and promoting the health, welfare and safety
of the residents of Baltimore City.
The City has received a letter of intent dated October 9,
1981 (the ^'Letter of Intent") from G.A.D. Limited
Partnership, a Maryland limited partnership (the "Bor-
rower"), pursuant to which the Borrower has requested
the City to participate in the financing of the costs,
charges, fees and expenses in connection with the ac-
quisition, improvement, and renovation (from time to
time hereinafter referred to collectively as the ''acquisi-
tion") by the Borrower of a certain project to be located
in Baltimore City, Maryland (the ''Project"), by issuing
and selling industrial development revenue bonds of the
'City in the aggregate principal amount not to exceed
$1,000,000 (the ''Bonds") and by loaning the proceeds
of the Bonds to the Borrower, upon the terms and con-
ditions of a loan agreement to be entered into between
the City and the Borrower (the "Loan Agreement"),
as permitted by the Enabling Law (such loan being
herein referred to as the "Loan") .
The Project and the acquisition thereof, will consist
generally of (a) the acquisition of the property located
at 1319-23 N. Charles Street in Baltimore City, (b)
the acquisition and installation in buildings located
there, which have 20,000 square feet, more or less, of
usable space, of any or all other improvements therein
as may be necessary or useful in connection with the
operation thereof. The Project will be operated by the
Borrower for use by the Borrower or any tenant or
tenants of the Borrower as a restaurant, office and apart-
ment facility.
The Loan Agreement will require Borrower (a) to
use the proceeds of the Bonds solely to finance the com-
pletion of the acquisition, improvement and/or renova-
tion of the Project, payment of expenses of issuance
of the Bonds, and payment of interest on the Bonds
ORDINANCES 1149
during a period not to exceed three years following the
date of the Bonds, and (b) to make Loan payments
which will be sufficient to enable the City to pay the
principal of and interest and premium, if any, on the
Bonds when and as the same shall become due and
payable.
As security for the Bonds, the City will enter into
either (a) a trust agreement (the "Trust Agreement")
with a corporate trustee (the 'Trustee") to be appointed
by the Board of Finance of the City (the ''Board") or
(b) an Assignment and Security Agreement (the "As-
signment") with (i) the original purchaser of the
Bonds (the "Original Purchaser"), if on the date of
delivery of the Bonds the acquisition of the Project
has been completed, or (ii) the Original Purchaser and
a trustee (which may be the Original Purchaser) (col-
lectively, the "Project Fund Trustee"), if on the date
of delivery of the Bonds the acquisition of the Project
has not been completed. Pursuant to the Trust Agree-
ment or the Assignment, the City will assign to the
Trustee or, if the Assignment is entered into, the
Original Purchaser, its successors and assigns, (among
other things) (a) all of the City's right, title and
interest in and to and remedies under the Loan Agree-
ment, including (without limitation) any and all security
referred to therein, excepting only the right of the City
to indemnification by the Borrower and to payments
to the City for expenses incurred by the City itself,
(b) the receipts and revenues of the City from the
Loan, (c) certain moneys which are at any time or
from time to time on deposit v:ith the Trustee or the
Project Fund Trustee, (d) all right, title and interest
in and to and remedies with respect to any and all
other property of every description and nature from
time to time by delivery or by writing of any kind
conveyed, pledged, assigned or transferred, as and for
additional security for the Bonds, by the City or by
anyone on its behalf or v/ith its written consent, to the
Trustee, or, if the Assignment is entered into, the
Original Purchaser, its successors or assigns, and (e)
all of the City's right, title and interest in and to and
remedies under such other documents, including (with-
1150 ORDINANCES Ord. No. 446
out limitation) mortgages, deeds of trust, guaranties
and security instruments, as the Board shall deem neces-
sary to effectuate the issuance, sale and delivery of the
Bonds and which the Board shall approve by a resolu-
tion or resolutions (the "Resolution") to be adopted by
the Board prior to the issuance, sale and delivery of
any of the Bonds.
The Bonds will be sold at a private (negotiated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to lend the proceeds
thereof to the Borrower for the sole and exclusive pur-
poses of financing the costs of the Project, the expenses of
issuance of the Bonds, and interest ^vith respect to the
Bonds during a period not to exceed three years following
the date of the Bonds, will facilitate and expedite the com-
pletion of the acquisition of the Project by the Borrower.
(2) The completion of the acquisition of the Project
by the Borrower and the financing thereof as provided in
this Ordinance will serve to promote the general purposes
contemplated by the Enabling Law by (a) sustaining jobs
and employment in Baltimore City; (b) promoting eco-
nomic development in Baltimore City; and (c) encouraging
the increase of industry and a balanced economy in Balti-
more City.
(3) The Bonds and the interest thereon shall not be
general obligations of the City, and shall not be a pledge of
or involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. The Bonds and the interest thereon
shall not constitute or give rise to any pecuniary liability
of the City. The Bonds and the interest thereon shall be
ORDINANCES 1151
limited obligations of the City, repayable by the City solely
from the revenue derived from Loan repayments (both
principal and interest) made to the City by the Borrower
on account of the Loan and from any other moneys made
available to the City for such purpose. If a Trust Agree-
ment is entered into, the proceeds of the Bonds will be
paid directly to the Trustee to be held and disbursed by
the Trustee as provided in the Trust Agreement to be ap-
proved by the Board in the Resolution. If an Assignment
is entered into, and the Project has not been completed
on or before the date of delivery of the Bonds, the Board
will provide in the Resolution that the proceeds will be
paid directly to the Project Fund Trustee and deposited
by the Project Fund Trustee into the Project Fund created
under the Assignment. If an Assignment is entered into,
and the Board finds and determines that the Project has
been or will be completed on or before the date of delivery
of the Bonds, the Board may provide in the Resolution
that no Project Fund will be created under the Assign-
ment and that the proceeds of the Bonds will be paid di-
rectly to the Borrower, or for the account of the Borrower,
to be used by the Borrower to pay the costs of, or to
reimburse the Borrower for the payment of the costs of,
the completion of the Project. Payments of the principal
of and premium (if smy) and interest on the Loan will be
paid by the Borrower directly to the Trustee as provided
in the Trust Agreement or to the Original Purchaser, its
successors and assigns, as provided in the Assignment, to
be approved by the Board in the Resolution. No such moneys
will be commingled with the City's funds or will be sub-
ject to the absolute control of the City, but will be sub-
ject only to such limited supervision and checks as are
deemed necessary or desirable by the City to insure that
the proceeds of the Bonds are used to accomplish the pub-
lic purposes of the Enabling Law and this Ordinance. The
loan form of transaction authorized hereunder shall in no
event constitute a capital project within the meaning of
any charter or statutor^^ provision. The public purposes
expressed in the Enabling Law are to be achieved by fa-
cilitating the completion of the Project by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's prop-
1152 ORDINANCES Ord. No. 446
erty shared by all holders of the Borrower's obligations
which rank and are secured equally with the Borrower's
obligations pursuant to the Loan Agreement, (b) any lien
and security interest created by the Loan Agreement, and
(c) any interest created by any other mortgage or deed of
trust or other security instrument executed and delivered
by the Borrower or any third party as security for the Loan
or the Bonds as the Board may provide for and approve in
the Resolution. The security for the Bonds shall be solely
and exclusively (a) the absolute, irrevocable and uncondi-
tional obligations of the Borrower to make the payments
required by the Loan Agreement, (b) moneys realized from
the liquidation of any lien and security interest created by
the Loan Agreement and of any lien or security interest
created with respect to any property as security for the
Loan or the Bonds as the Board may provide for and ap-
prove in the Resolution, and (c) moneys realized from any
guaranty of the Bonds or of the Loan as the Board may
provide for and approve in the Resolution.
(5) The best interests of the City will be served by
selling the Bonds at private (negotiated) sale, as author-
ized by the Enabling Law, upon terms and conditions ap-
proved by the Board in the Resolution.
Sec. 2. And he it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
and as limited obligations of the City and not upon its
full faith and credit, its Bonds, the Baltimore City, Mary-
land industrial development revenue Bonds (1319-23 N.
Charles Project), in the aggregate principal amount not
to exceed $1,000,000, subject to the provisions of this Ordi-
nance. The proceeds of the Bonds will be loaned to the
Borrower pursuant to the terms and provisions of the Loan
Agreement, to be used by the Borrower for the sole and
exclusive purpose of financing the costs, charges, fees, and
expenses in connection with the completion of the Project.
The Bonds and the interest thereon shall be limited obli-
gations of the City, repayable by the City solely from the
revenue derived from Loan repayments (both principal
and interest) made to the City by the Borrower pursuant
to the Loan Agreement and from any other moneys made
ORDINANCES 1153
available to the City for such purpose. The security for
the Bonds shall be solely and exclusively as provided in
Section 1 of this Ordinance.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to fur-
ther evidence the present intent of the City to issue the
Bonds in accordance with the terms and provisions of this
Ordinance.
Sec. 4. And be it further ordained, That each of the
Bonds shall bear the descriptive title "Baltimore City,
Maryland Industrial Development Revenue Bond (1319-23
N. Charles Project)", provided, that the descriptive title
may contain such other descriptive infonnation as the
Board may prescribe in the Resolution (e.g. ''1981 Series").
The Bonds shall bear interest at the rate or rates of in-
terest to be determined by negotiation with the original
purchaser or purchasers of the Bonds and to be approved
and prescribed by the Board in the Resolution.
Sec. 5. And be it further ordained, That the definitive
Bonds, which may be engraved, printed or typewritten,
including any Trustee's Certificate of Authentication to be
endorsed thereon if the Trust Agreement is entered into,
shall be in such form, not inconsistent with the Enabling
Law and the provisions of this Ordinance, as the Board
may approve in the Resolution.
Sec. 6. And be it further ordained, That the Bonds shall
be executed in the name of the City and on its behalf by
the Mayor of the City, by his manual or facsimile signa-
ture, and by the Director of Finance of the City, by his
manual or facsimile signature, and the corporate seal of
the City or a facsimile thereof shall be impressed or
otherwise reproduced thereon and attested by the Custo-
dian of the City Seal, by his manual signature. The Loan
Agreement, the Trust Agreement or the Assignment and,
where applicable, all other documents as the Board shall
deem necessary to effectuate the issuance, sale and delivery
of the Bonds, shall be executed in the name of the City and
1154 ORDINANCES Ord. No. 446
on its behalf by the Mayor of the City by his manual or
facsimile signature, and the corporate seal of the City
or a facsimile thereof shall be impressed or otherwise re-
produced thereon and attested by the Custodian of the City
Seal by his manual signature. In case any officer whose
signature or a facsimile of whose signature shall appear
on the Bonds or any of the aforesaid documents shall cease
to be such officer before the delivery of the Bonds or any
of the other aforesaid documents, such signature or such
facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in
office until delivery. The Mayor of the City, the Director of
Finance of the City, the Custodian of the City Seal and
other officials of the City are hereby authorized and em-
powered to do all such acts and things and execute such
documents and certificates as the Board may determine
in the Resolution to be necessary to carry out and comply
with the provisions hereof.
Sec. 7. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time or from
time to time and in one or more series and in such amount
or amounts not exceeding, in the aggregate, the principal
amount of $1,000,000, as the Board shall prescribe in the
Resolution.
Sec. 8. And be it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of such
form and tenor, and shall be payable in such amounts, at
such times and at such place or places as the Board shall
prescribe in the Resolution.
Sec. 9. And be it further ordained, That the Bonds may
be subject to redemption prior to their stated maturities
upon such terms and conditions as the Board shall pre-
scribe in the Resolution.
Sec. 10. And be it further ordained, That prior to the
issuance, sale and delivery of the Bonds, the Board shall
adopt the Resolution pursuant to which the Board shall :
(a) prescribe the form, tenor, terms and conditions
of and security for the Bonds ;
4
ORDINANCES 1155
(b) prescribe the actual amounts, rate or rates of
interest (or the method of determining the same), de-
nominations, date, actual maturity or maturities, and the
place or places of payment of the Bonds, and the terms
and conditions and details under which the Bonds may be
called for redemption prior to their stated maturities;
(c) if a Trust Agreement is entered into, appoint a
bank having trust powers, or a trust company, as Trustee
for the Bonds and, if necessary, appoint a paying agent or
agents for the Bonds, which may be the Trustee ;
(d) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
and (iii) such other documents, including (without limita-
tion) mortgages, deeds of trust, guaranties and security
instruments as the Board shall deem necessary to approve
in order to effectuate the issuance, sale and delivery of the
Bonds ;
(e) determine the time of execution, issuance, sale and
delivery of the Bonds and prescribe any and all other
details of the Bonds ;
(f) provide for the direct payment by the Borrower
of all costs, fees and expenses incurred by or on behalf
of the City in connection with the issuance, sale and de-
livery of the Bonds, including (without limitation) costs
of printing (if any) and issuing the Bonds, legal expenses
and compensation to any person (other than full time em-
ployees of the City) performing services by or on behalf
of the City in connection therewith ;
(g) if the Trust Agreement is entered into, provide
for the issuance and sale (subject to the passage of an
appropriate ordinance authorizing the same as may be re-
quired by the time) of one or more series of additional
bonds and one or more series of refunding bonds ; and
(h) do any and all things, and authorize the officials
of the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 11. And be it further ordained, That the Loan
Agreement and the Trust Agreement or the Assignment
1156 ORDINANCES Ord. No. 446
shall contain such terms, provisions and conditions, not
inconsistent with the Enabling Law and the provisions of
this Ordinance, as the Board shall approve in the Resolution.
Sec. 12. And he it further ordained, That, as authorized
by the Enabling Law, the Bonds shall be sold at private
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 13. And he it further ordained, That the Bonds and
the interest thereon shall not be general obligations of the
City and shall not be a pledge of or involve the faith and
credit or the taxing power of the City, and shall not con-
stitute a debt of the City, all within the meaning of Section
7 of Article XI of the Constitution of Maryland or any
other constitutional, statutory or charter provision limiting
or restricting the sale or issuance of bonds, notes or other
obligations of the City. The Bonds and the interest thereon
shall not constitute or give rise to any pecuniary liability
of the City. The Bonds, and the interest thereon, shall be
limited obligations of the City, the principal of and in-
terest on which Bonds shall be payable by the City solely
from the revenue derived from Loan repayments (both
principal and interest) made to the City by the Borrower
on account of the Loan and, to the extent provided by the
Board in the Resolution, from the proceeds of the Bonds,
and from any other moneys made available to the City
for such purpose. If the Trust Agreement is entered into,
the proceeds of the Bonds will be paid directly to the
Trustee to be held and disbursed by the Trustee as pro-
vided in the Trust Agreement to be approved by the Board
in the Resolution. If an Assignment is entered into and the
Project has not been completed, the Board will provide
in the Resolution that the proceeds will be paid directly
to the Project Fund Trustee and deposited by the Project
Fund Trustee into the Project Fund thereby created under
this Assignment, or if the Assignment is entered into and
the Board finds and determines that the Project has been
or will be completed on or before the date of delivery of
the revenue bonds, the Board may provide in the Resolu-
tion that the proceeds of the revenue bonds will be paid
directly to the Borrower, or for the account of the Bor-
rower, to be used by the Borrower to pay the costs of, or
ORDINANCES 1157
to reimburse the Borrower for payment of the costs of,
the completion of the Project, as provided in the Assign-
ment to be approved by the Board in the Resolution. No
such moneys will be commingled with the City's funds or
will be subject only to the absolute control of the City, but
will be subject only to such limited supei^vision and checks
as are deemed necessary or desirable by the City to insure
that the proceeds of the Bonds are used to accomplish the
public purposes of the Enabling Law and this Ordinance.
Sec. 14. And be it further ordained, That in considera-
tion of the purchase and acceptance of the Bonds by those
who shall hold the Bonds from time to time, the City does
hereby, and by the execution and delivery of the Trust
Agreement or the Assignment to be approved by the Board
shall, set aside or pledge the income and revenue under
the Loan Agreement (other than payments to the City for
indemnification or to reimburse the City for expenses in-
curred by the City itself) to the Trustee or, if the Assign-
ment is entered into, the Original Purchaser, its succes-
sors and assigns, to iDe used and applied for the payment
of the principal of and interest on the Bonds. Pursuant
to the terms of the Loan Agreement to be approved by
the Board in the Resolution, payments sufficient for the
prompt payment when due of the principal of, premium,
if any, and interest on the Bonds are to be paid by the
Borrower to the Trustee for the benefit of the holders of
the Bonds, or, if the Assignment is entered into, to the
Original Purchaser, its successors and assigns, for the
account of the City.
Sec. 15. And he it further ordained, That the Borrower
shall agree that:
(a) It will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
1158 ORDINANCES Ord. No. 446
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 16. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision,
sentence, clause, section or part hereof is held illegal,
invalid or unconstitutional or inapplicable to any person or
circumstances, such illegality, invalidity or unconstitution-
ality, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the
legislative intent that this Ordinance would have been
passed if such illegal, invalid or unconstitutional provision,
sentence, clause, section or part had not been included
herein, and if the person or circumstances to w^hich this
Ordinance or any part hereof are inapplicable had been
specifically exempted herefrom.
Sec. 17. And be it further ordained. That if the Bonds
are not issued and sold w^ithin six months from the date
on which this Ordinance is approved by the Mayor of the
City, the authorization provided in this Ordinance for the
City to issue and sell the Bonds shall expire; provided,
however, that the Board may, after shovdng of good cause
at a public hearing held before the Board, extend such
authorization for one additional term not to exceed six
months. The Board, in its sole discretion, shall determine
the sufficiency, or lack thereof, of the reasons presented
for any requested extension of this Ordinance. If an
extension is granted, notice of such extension and the
reasons therefor must be sent to the City Council.
Sec. 18. And be it further ordained. That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
ORDINANCES 1159
No. 447
(Council No. 820)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE
BONDS— (THE BOSTON METALS COMPANY
CHERRY HILL PROJECT)
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore (the "City") to issue and
sell, at any time or from time to time and in one or
more series, as limited obligations of the City and not
upon its full faith and credit, its industrial development
revenue bonds, to be designated "Baltimore City, Mary-
land Industrial Development Revenue Bonds (The Boston
Metals Company Cherry Hill Project)", in the aggre-
gate principal amount not to exceed $700,000, pursuant
to the provisions of Sub-section (50) of Article II of
the Charter of Baltimore City (1964 Revision), as
amended, for the sole and exclusive purposes of financ-
ing the costs, charges, fees and expenses in connection
with the acquisition, improvement, and renovation of
the property situate at 1600 Cherry Hill Road, and cer-
tain improvements in connection therewith, to be op-
erated, and/or leased to others to be operated, as a crane-
equipped manufacturing, fabricating and/or distribu-
tion facility by The Boston Metals Company, a Mary-
land corporation, including payment of the necessary
expenses of preparing, printing and selling such bonds
and payment of interest on such bonds during the
period of leasing and acquisition of such property (such
period not to exceed three years following the date of
such bonds) ; authorizing the Mayor of the City to accept,
on behalf of the City, a letter of intent from The Boston
Metals Company addressed to the City dated October 9,
1981; making certain legislative findings; authorizing
and empowering the Board of Finance of the City, prior
to the issuance, sale and delivery of such bonds, to adopt
a resolution pursuant to which the Board of Finance
of the City shall (a) prescribe, among other things but
not limited to, the form, terms, provisions, manner or
method of issuing, selling and delivering, and the time
1160 ORDINANCES Ord. No. 447
or times of issuance, and any and all other details of
such bonds, and (b) do any and all things necessary,
proper or expedient in connection with the issuance,
sale and delivery of such bonds ; authorizing the private
(negotiated) sale of such bonds; providing that The
Boston Metals Company shall agree to submit any plans
and specifications to, and to coordinate v^^ith, the De-
partment of Housing and Community Development in
connection with the acquisition and installment of such
project; providing for the expiration of the authoriza-
tion of the transaction approved by this Ordinance, if
such bonds are not issued and sold v^thin six months
from the date this Ordinance is approved by the Mayor,
unless the authorization is extended by the Board of Fi-
nance as provided in this Ordinance; and generally pro-
viding for and determining various matters and details
in connection with the authorization, issuance, security,
sale, delivery and payment of such bonds.
RECITALS
Sub-section (50) of Article II of the Charter of
Baltimore City (1964 Revision), as amended (the "En-
abling Law"), empowers Mayor and City Council of
Baltimore (the **City*') to issue, sell and deliver revenue
bonds and to use the proceeds of the sale of such revenue
bonds to finance undertakings for the accomplishment
of any of the purposes, objects and powers of the City.
Some of the general objectives of the City, contemplated
by the Enabling Law, include the relief of conditions
of unemployment in Baltimore City, encouraging the
increase of industry and a balanced economy in Balti-
more City, promoting economic development in Balti-
more City, and promoting the health, welfare and safety
of the residents of Baltimore City.
The City has received a letter of intent dated October
9, 1981 (the "Letter of Intent") from The Boston Metals
Company, a Maryland corporation (the "Borrower"),
pursuant to which the Borrower has requested the City
to participate in the financing of the costs, charges, fees
and expenses in connection with the acquisition, im-
provement, and renovation (from time to time herein-
after referred to collectively as the "acquisition") by
ORDINANCES 1161
the Borrower of a certain project to be located in Bal-
timore City, Maryland (the "Project"), by issuing and
selling industrial development revenue bonds of the City
in the aggregate principal amount not to exceed $700,000
(the "Bonds") and by loaning the proceeds of the Bonds
to the Borrower, upon the terms and conditions of a
loan agreement to be entered into between the City and
the Borrower (the "Loan Agreement"), as permitted
by the Enabling Law (such loan being herein referred
to as the "Loan").
The Project and the acquisition thereof, will consist
generally of (a) the acquisition of the lots of land lo-
cated at 1600 Cherry Hill Road in Baltimore City, (b)
the acquisition and installation in such building, which
has 60,000 square feet, more or less, of usable space,
of any or all other improvements therein as may be
necessary or useful in connection with the operation
thereof. The Project will be operated by the Borrower
for use by the Borrower or any tenant or tenants of
the Borrower as a crane-equipped manufacturing, fabri-
cating and/or distribution facility.
The Loan Agreement will require Borrower (a) to use
the proceeds of the Bonds solely to finance the comple-
tion of the acquisition, improvement and/or renovation
of the Project, payment of expenses of issuance of the
Bonds, and payment of interest on the Bonds during a
period not to exceed three years following the date of
the Bonds, and (b) to make Loan payments which will
be sufficient to enable the City to pay the principal of
and interest and premium, if any, on the Bonds when and
as the same shall become due and payable.
As security for the Bonds, the City will enter into
either (a) a trust agreement ^the "Trust Aq-ree^ent"')
with a corporate trustee (the "Trustee") to be appointed
by the Board of Finance of the City (the "Board") or
(b) an Assignment and Security Agreement (the "As-
signment") with (i) the original purchaser of the Bonds
(the "Original Purchaser"), if on the date of delivery
of the Bonds the acquisition of the Project has been
completed, or (ii) the Original Purchaser and a trustee
(which may be the Original Purchaser) (collectively, the
11G2 ORDINANCES Ord. No. 447
"Project Fund Trustee"), if on the date of delivery
of the Bonds the acquisition of the Project has not been
completed. Pursuant to the Trust Agreement or the As-
signm.ent, the City will assign to the Trustee or, if the
Assignment is entered into, the Original Purchaser, its
successors and assigns, (among other things) (a) all
of the City's right, title and interest in and to and
remedies under the Loan Agreement, including (without
limitation) any and all security referred to therein, ex-
cepting only the right of the City to indemnification by
the Borrower and to payments to the City for expenses
incurred by the City itself, (b) the receipts and revenues
of the City from the Loan, (c) certain moneys which
are at any time or from time to time on deposit with
the Trustee or the Project Fund Trustee, (d) all right,
title and interest in and to and remedies with respect
to any and all other property of every description and
nature from time to time by delivery or by writing of
any kind conveyed, pledged, assigned or transferred,
as and for additional security for the Bonds, by the
City or by anyone on its behalf or vdth its written con-
sent, to the Trustee, or, if the Assignment is entered
into, the Original Purchaser, its successors or assigns,
and (e) all of the City's right, title and interest in and
to and remedies under such other documents, including
(without limitation) mortgages, deeds of trust, guaran-
ties and security instruments, as the Board shall deem
necessary to effectuate the issuance, sale and delivery
of the Bonds and which the Board shall approve by a
resolution or resolutions (the "Resolution") to be adopted
by the Board prior to the issuance, sale and delivery of
any of the Bonds.
The Bonds will be sold at a private (negotiated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the Enabling Law, it
is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to lend the pro-
ORDINANCES 1163
ceeds thereof to the Borrower for the sole and exchisive
purposes of financing- the costs of the Project, the expenses
of issuance of the Bonds, and interest with respect to the
Bonds during a period not to exceed three years following
the date of the Bonds, will facilitate and expedite the
completion of the acquisition of the Project by the Borrower.
(2) The completion of the acquisition of the Project
by the Borrower and the financing thereof as provided in
this Ordinance will serve to promote the general purposes
contemplated by the Enabling Law by (a) sustaining jobs
and employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) The Bonds and the interest thereon shall not be
general obligations of the City, and shall not be a pledge
of or involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Ai^icle XI of the Constitution
of Maryland or within the meaning of any other constitu-
tional, statutory or charter provision limiting or restricting
the sale or issuance of bonds, notes or other obligations of
the City. The Bonds and the interest thereon shall not
constitute or give rise to any pecuniary liability of the
City. The Bonds and the interest thereon shall be limited
obligations of the City, repayable by the City solely from
the revenue derived from Loan repayments (both principal
and interest) made to the City by the Borrower on account
of the Loan and from any other moneys made available to
the City for such purpose. If a Trust Agreement is entered
into, the proceeds of the Bonds will be paid directly to the
Trustee to be held and disbursed by the Trustee as pro-
vided in the Trust Agreement to be approved by the Board
in the Resolution. If an Assignment is entered into, and
the Project has not been completed on or before the date
of delivery of the Bonds, the Board will provide in the
Resolution that the proceeds will be paid directly to the
Project Fund Trustee and deposited by the Project Fund
Trustee into the Project Fund created under the Assign-
ment. If an Assignment is entered into, and the Board
finds and determines that the Project has been or will be
completed on or before the date of delivery of the Bonds,
1164 ORDINANCES Ord. No. 447
the Board may provide in the Resolution that no Project
Fund will be created under the Assignment and that the
proceeds of the Bonds will be paid directly to the Borrower,
or for the account of the Borrower, to be used by the
Borrower to pay the costs of, or to reimburse the Borrower
for the payment of the costs of, the completion of the
Project. Payments of the principal of and premium (if
any) and interest on the Loan will be paid by the Borrower
directly to the Trustee as provided in the Trust Agree-
ment or to the Original Purchaser, its successors and
assigns, as provided in the Assignment, to be approved
by the Board in the Resolution. No such moneys will be
commingled with the City's funds or will be subject to
the absolute control of the City, but will be subject only
to such limited supervision and checks as are deemed
necessary or desirable by the City to insure that the pro-
ceeds of the Bonds are used to accomplish the public pur-
poses of the Enabling Law and this Ordinance. The loan
form of transaction authorized hereunder shall in no event
constitute a capital project within the meaning of any
charter or statutory provision. The public purposes ex-
pressed in the Enabling Law are to be achieved by facili-
tating the completion of the Project by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's prop-
erty shared by all holders of the Borrower's obligations
which rank and are secured equally with the Borrower's
obligations pursuant to the Loan Agreement, (b) any lien
and security interest created by the Loan Agreement, and
(c) any interest created by any other mortgage or deed of
trust or other security instrument executed and delivered
by the Borrower or any third party as security for the Loan
or the Bonds as the Board may provide for and approve
in the Resolution. The security for the Bonds shall be solely
and exclusively (a) the absolute, irrevocable and uncon-
ditional obligations of the Borrower to make the payments
required by the Loan Agreement, (b) moneys realized from
the liquidation of any lien and security interest created by
the Loan Agreement and of any lien or security interest
created with respect to any property as security for the
Loan or the Bonds as the Board may provide for and ap-
prove in the Resolution, and (c) moneys realized from any
ORDINANCES 1165
guaranty of the Bonds or of the Loan as the Board may pro-
vide for and approve in the Resolution.
(5) The best interests of the City will be served by
selling the Bonds at private (negotiated) sale, as author-
ized by the Enabling Law, upon terms and conditions
approved by the Board in the Resolution.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at any
time or from time to time and in one or more series, and
as limited obligations of the City and not upon its full
faith and credit, its Bonds, the Baltimore City, Maryland
Industrial Development Revenue Bonds (The Boston Metals
Company Cherry Hill Project) , in the aggregate principal
amount not to exceed $700,000, subject to the provisions
of this Ordinance. The proceeds of the Bonds will be loaned
to the Borrower pursuant to the terms and provisions of
the Loan Agreement, to be used by the Borrower for the
sole and exclusive purpose of financing the costs, charges,
fees, and expenses in connection with the completion of
the Project. The Bonds and the interest thereon shall be
limited obligations of the City, repayable by the City solely
from the revenue derived from Loan repayments (both
principal and interest) made to the City by the Borrower
pursuant to the Loan Agreement and from any other
moneys made available to the City for such purpose. The
security for the Bonds shall be solely and exclusively as
provided in Section 1 of this Ordinance.
Sec. 3. And he it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to fur-
ther evidence the present intent of the City to issue the
Bonds in accordance with the terms and provisions of
this Ordinance.
Sec. 4. And be it further ordained, That each of the
Bonds shall bear the descriptive title ''Baltimore City,
Maryland Industrial Development Revenue Bond (The
Boston Metals Company Cherry Hill Project)", provided,
that the descriptive title may contain such other descriptive
1166 ORDINANCES Ord. No. 447
information as the Board may prescribe in the Resolution
(e.g-. '^981 Series"). The Bonds shall bear interest at the
rate or rates of interest to be determined by negotiation
with the original purchaser or purchasers of the Bonds
and to be approved and prescribed by the Board in the
Resolution.
Sec. 5. And be it further ordained, That the definitive
Bonds, which may be engraved, printed or typewritten,
including any Trustee's Certificate of Authentication to be
endorsed thereon if the Trust Agreement is entered into,
shall be in such form, not inconsistent with the Enabling
Law and the provisions of this Ordinance, as the Board
may approve in the Resolution.
Sec. 6. And be it further ordained, That the Bonds shall
be executed in the name of the City and on its behalf by
the Mayor of the City, by his manual or facsimile signa-
ture, and by the Director of Finance of the City, by his
manual or facsimile signature, and the corporate seal of
the City or a facsimile thereof shall be impressed or other-
wise reproduced thereon and attested by the Custodian of
the City Seal, by his manual signature. The Loan Agree-
ment, the Trust Agreement or the Assignment and, where
applicable, all other documents as the Board shall deem
necessary to effectuate the issuance, sale and delivery of
the Bonds, shall be executed in the name of the City and
on its behalf by the Mayor of the City by his manual or
facsimile signature, and the corporate seal of the City or
a facsimile thereof shall be impressed or otherwise re-
produced thereon and attested by the Custodian of the
City Seal by his manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
nature or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian of the
City Seal and other officials of the City are hereby author-
ized and empowered to do all such acts and things and
execute such documents and certificates as the Board may
ORDINANCES 1167
determine in the Resolution to be necessary to carry out
and comply with the provisions hereof.
Sec. 7. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time or from
time to time and in one or more series and in such amount
or amounts not exceeding, in the aggregate, the principal
amount of $700,000 as the Board shall prescribe in the
Resolution.
Sec. 8. And he it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of such
form and tenor, and shall be payable in such amounts, at
such times and at such place or places as the Board shall
prescribe in the Resolution.
Sec. 9. And he it further ordained. That the Bonds may
be subject to redemption prior to their stated maturities
upon such terms and conditions as the Board shall pre-
scribe in the Resolution.
Sec. 10. And he it further ordained, That prior to the
issuance, sale and delivery of the Bonds, the Board shall
adopt the Resolution pursuant to which the Board shall :
(a) prescribe the form, tenor, terms and conditions of
and security for the Bonds;
(b) prescribe the actual amounts, rate or rates of in-
terest (or the method of determining the same), denomi-
nations, date, actual maturity or maturities, and the place
or places of pajrment of the Bonds, and the terms and
conditions and details under which the Bonds may be called
for redemption prior to their stated maturities ;
(c) if a Trust Agreement is entered into, appoint a
bank having trust powers, or a trust company, as Trustee
for the Bonds and, if necessary, appoint a paying agent
or agents for the Bonds, which may be the Trustee;
(d) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
and (iii) such other documents, including (without limita-
1168 ORDINANCES Ord. No. 447
tion) mortgages, deeds of trust, guaranties and security
instruments as the Board shall deem necessary to approve
in oi'der to effectuate the issuance, sale and delivery of
the Bonds:
(e) determine the time of execution, issuance, sale and
delivery of the Bonds and prescribe any and all other de-
tails of the Bonds ;
(f) provide for the direct payment by the Borrower
of all costs, fees and expenses incurred by or on behalf
of the City in connection with the issuance, sale and de-
livery of the Bonds, including (without limitation) costs
of printing (if any) and issuing the Bonds, legal expenses
and compensation to any person (other than full time em-
ployees of the City) performing services by or on behalf
of the City in connection therewith;
(g) if the Trust Agreement is entered into, provide
for the issuance and sale (subject to the passage of an
appropriate ordinance authorizing the same as may be
required by the time) of one or more series of additional
bonds and one or more series of refunding bonds; and
(h) do any and all things, and authorize the officials
of the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 11. And be it further ordained, That the Loan Agree-
ment and the Trust Agreement or the Assignment shall
contain such terms, provisions and conditions, not incon-
sistent with the Enabling Law and the provisions of this
Ordinance, as the Board shall approve in the Resolution.
Sec. 12. And be it further ordained, That, as authorized
by the Enabling Law, the Bonds shall be sold at private
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 13. And be it further ordained, That the Bonds and
the interest thereon shall not be general obligations of the
City and shall not be a pledge of or involve the faith and
credit or the taxing power of the City, and shall not con-
stitute a debt of the City, all within the meaning of Sec-
ORDINANCES 1169
tion 7 of Article XI of the Constitution of Maryland or
any other constitutional, statutory or charter provision
limiting or restricting the sale or issuance of bonds, notes
or other obligations of the City. The Bonds and the in-
terest thereon shall not constitute or give rise to any
pecuniary liability of the City. The Bonds, and the inter-
est thereon, shall be limited obligations of the City, the
principal of and interest on which Bonds shall be payable
by the City solely from the revenue derived from Loan
repayments (both principal and interest) made to the City
by the Borrower on account of the Loan and, to the extent
provided by the Board in the Resolution, from the pro-
ceeds of the Bonds, and from any other moneys made
available to the City for such purpose. If the Trust Agree-
ment is entered into, the proceeds of the Bonds will be
paid directly to the Trustee to be held and disbursed by the
Trustee as provided in the Trust Agreement to be approved
by the Board in the Resolution. If an Assignment is en-
tered into and the Project has not been completed, the
Board will provide in the Resolution that the proceeds
will be paid directly to the Project Fund Trustee and de-
posited by the Project Fund Trustee into the Project Fund
thereby created under this Assignment, or if the Assign-
ment is entered into and the Board finds and determines
that the Project has been or will be completed on or before
the date of delivery of the revenue bonds, the Board may
provide in the Resolution that the proceeds of the revenue
bonds will be paid directly to the Borrower, or for the
account of the Borrower, to be used by the Borrower to
pay the costs of, or to reimburse the Borrower for pay-
ment of the costs of, the completion of the Project, as
provided in the Assignment to be approved by the Board
in the Resolution. No such moneys will be commingled
with the City's funds or will be subject to the absolute
control of the City, but will be subject only to such limited
supervision and checks as are deemed necessary or de-
sirable by the City to insure that the proceeds of the Bonds
are used to accomplish the public purposes of the Enabling
Law and this Ordinance.
Sec. 14. And be it further ordained, That in considera-
tion of the purchase and acceptance of the Bonds by those
who shall hold the Bonds from time to time, the City does
1170 ORDINANCES Ord. No. 447
hereby, and by the execution and dehvery of the Trust
Agreement or the Assignment to be approved by the
Board shall, set aside or pledge the income and revenue
under the Loan Agreement (other than pajmients to the
City for indemnification or to reimburse the City for
expenses incurred by the City itself) to the Trustee or,
if the Assignment is entered into, the Original Purchaser,
its successors and assigns, to be used and applied for the
payment of the principal of and interest on the Bonds.
Pursuant to the terms of the Loan Agreement to be ap-
proved by the Board in the Resolution, payments sufficient
for the prompt payment when due of the principal of,
premium, if any, and interest on the Bonds are to be paid
by the Borrower to the Trustee for the benefit of the
holders of the Bonds, or, if the Assignment is entered into,
to the Original Purchaser, its successors and assigns, for
the account of the City.
Sec. 15. And be it further ordained, That the Borrower
shall agree that:
(a) It Vvill submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse ap-
proval of any plans and specifications for aesthetic or
functional reasons; and
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 16. And he it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutionality,
or inapplicability shall not aflfect or impair any of the
remaining provisions, sentences, clauses, sections, or pai-ts
of this Ordinance or their application to other persons or
circumstances. It is hereby declared to be the legislative
intent that this Ordinance would have been passed if
such illegal, invalid or unconstitutional provision, sentence.
ORDINANCES 1171
clause, section or part had not been included herein, and
if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 17. A7id be it further ordained, That, if the Bonds
are not issued and sold ^\athin six months from the date
on which this Ordinance is approved by the Mayor of the
City, the authorization provided in this Ordinance for
the City to issue and sell the Bonds shall expire ; provided,
however, that the Board may, after showing of good cause
at a public hearing held before the Board, extend such
authorization for one additional term not to exceed six
months. The Board, in its sole discretion, shall deteiTnine
the sufficiency, or lack thereof, of the reasons presented
for any requested extension of this Ordinance. If an exten-
sion is granted, notice of such extension and the reasons
therefor must be sent to the City Council.
Sec. 18. And he it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 448
(Council No. 821)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS—
(ERDMAN SHOPPING CENTER PROJECT)
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore (the *'City") to issue and
sell, at any time or from time to time and in one or
more series, as limited obligations of the City and not
upon its full faith and credit, its industrial development
revenue bonds, to be designated "Baltimore City, Mary-
land Industrial Development Revenue Bonds (Erdman
Shopping Center Project)", in the aggregate principal
]172 ORDINANCES Ord. No. 448
amount not to exceed $3,500,000, pursuant to the pro-
visions of Sub-section (50) of Article II of the Charter
of Baltimore City (1964 Revision), as amended, for the
sole and exclusive purposes of financing the costs,
charges, fees and expenses in connection with improve-
ment, razing, rehabilitation, and renovation of the prop-
erty situate at 3833-3951 Erdman Avenue, and certain
improvements in connection therewith, to be operated,
under lease to others, as a community shopping center
facility by Goldman & Klein Associates, a Maryland
limited partnership, including pajrment of the necessary
expenses of preparing, printing and selling such bonds
and payment of interest on such bonds during the period
of leasing and acquisition of such property (such period
not to exceed three years follov^dng the date of such
bonds) ; authorizing the Mayor of the City to accept,
on behalf of the City, a letter of intent from Goldman
& Klein Associates addressed to the City dated October
9, 1981 ; making certain legislative findings ; authorizing
and empowering the Board of Finance of the City, prior
to the issuance, sale and delivery of such bonds, to adopt
a resolution pursuant to which the Board of Finance of
the City shall (a) prescribe, among other things but
not limited to, the form, terms, provisions, manner or
method of issuing, selling and delivering, and the time
or times of issuance, and any and all other details of
such bonds, and (b) do any and all things necessary,
proper or expedient in connection with the issuance, sale
and delivery of such bonds; authorizing the private
(nesfotiated) sale of such bonds; providing that Goldman
& Klein Associates shall agree to submit any plans and
specifications to, and to coordinate with, the Department
of Housing and Community Development in connection
with the acquisition and installment of such project;
providing for the expiration of the authorization of the
transaction approved by this Ordinance, if such bonds
are not issued and sold within six months from the date
this Ordinance is approved by the Mayor, unless the
authorization is extended by the Board of Finance as
provided in this Ordinance; and generally providing for
and determining various matters and details in connec-
tion with the authorization, issuance, security, sale, de-
livery and payment of such bonds.
ORDINANCES 1173
RECITALS
Sub-section (50) of Article II of the Charter of Bal-
timore City (1964 Revision), as amended (the "Enabling
Law'*), empowers Mayor and City Council of Baltimore
(the "City") to issue, sell and deliver revenue bonds and
to use the proceeds of the sale of such revenue bonds
to finance undertakings for the accomplishment of any
of the purposes, objects and powers of the City. Some
of the general objectives of the City, contemplated by
the Enabling Law, include the relief of conditions of un-
employment in Baltimore City, encouraging the increase
of industry and a balanced economy in Baltimore City,
promoting economic development in Baltimore City, and
promoting the health, welfare and safety of the resi-
dents of Baltimore City.
The City has received a letter of intent dated October
9, 1981 (the "Letter of Intent") from Goldman & Klein
Associates, a Maryland limited partnership (the "Bor-
rower"), pursuant to which the Borrower has requested
the City to participate in the financing of the costs,
charges, fees and expenses in connection with the leas-
ing, acquisition, improvement, and renovation (from
time to time hereinafter referred to collectively as the
"acquisition") by the Borrower of a certain project to
be located in Baltimore City, Maryland (the "Project"),
by issuing and selling charter bonds of the City in the
aggregate principal amount not to exceed $3,500,000 (the
"Bonds") and by loaning the proceeds of the Bonds to
the Borrower, upon the terms and conditions of a loan
agreement to be entered into between the City and the
Borrower (the "Loan Agreement"), as permitted by
the Enabling Law (such loan being herein referred to
as the "Loan").
The Project will consist generally of (a) the im-
provement, razing, rehabilitation, and renovation of
property located at 3833-3951 Erdman Avenue in Bal-
timore City, (b) installation in buildings located there
which have 135,000 square feet, more or less, of aggre-
gate usable space, of any or all other improvements
therein as may be necessary or useful in connection with
the operation thereof. The Project will be operated by
1174 ORDINANCES Ord. No. 448
the Borrower for use by the Borrower or any tenant
or tenants of the Borrower as a community shopping
center.
The Loan Agreement will require Borrower (a) to
use the proceeds of the Bonds solely to finance the com-
pletion of the improvement, razing, rehabilitation, and
renovation of the Project, payment of expenses of is-
suance of the Bonds, and payment of interest on the
Bonds during a period not to exceed three years fol-
lowing the date of the Bonds, and (b) to make Loan
payments which will be sufficient to enable the City to
pay the principal of and interest and premium, if any,
on the Bonds when and as the same shall become due
and payable.
As security for the Bonds, the City will enter into
either (a) a trust agreement (the "Trust Agreement")
with a corporate trustee (the "Trustee") to be appointed
by the Board of Finance of the City (the "Board") or (b)
an Assignment and Security Agreement (the "Assign-
ment") with (i) the original purchaser of the Bonds
(the "Original Purchaser"), if on the date of deliver>^
of the Bonds the acquisition of the Project has been
completed, or (ii) the Original Purchaser and a trustee
(which may be the Original Purchaser) (collectively, the
"Project Fund Trustee"), if on the date of delivery of
the Bonds the acquisition of the Project has not been
completed. Pursuant to the Trust Agreement or the
Assignment, the City will assign to the Trustee or, if
the Assignment is entered into, the Original Purchaser,
its successors and assigns, (among other things) (a)
all of the City's right, title and interest in and to and
remedies under the Loan Agreement, including (without
limitation) any and all security referred to therein,
excepting only the right of the City to indemnification
by the Borrower and to payments to the City for ex-
penses incurred by the City itself, (b) the receipts and
revenues of the City from the Loan, (c) certain moneys
which are at any time or from time to time on deposit
with the Trustee or the Project Fund Trustee, (d) all
right, title and interest in and to and remedies with
respect to any and all other property of every descrip-
tion and nature from time to time by delivery or by
ORDINANCES 1175
writing of any kind conveyed, pledged, assigned or trans-
ferred, as and for additional security for the Bonds, by
the City or by anyone on its behalf or with its written
consent, to the Trustee, or, if the Assignment is entered
into, the Original Purchaser, its successors or assigns,
and (e) all of the City's right, title and interest in and
to and remedies under such other documents, including
(without limitation) mortgages, deeds of trust, guaran-
ties and security instruments, as the Board shall deem
necessary to effectuate the issuance, sale and delivery
of the Bonds and which the Board shall approve by a
resolution or resolutions (the ^'Resolution") to be adopted
by the Board prior to the issuance, sale and delivery
of any of the Bonds.
The Bonds will be sold at a private (negotiated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the Enabling Law, it
is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to lend the pro-
ceeds thereof to the Borrower for the sole and exclusive
purposes of financing the costs of the Project, the ex-
penses of issuance of the Bonds, and interest with respect
to the Bonds during a period not to exceed three years
following the date of the Bonds, will facilitate and ex-
pedite the completion of the acquisition of the Project
by the Borrower.
(2) The completion of the acquisition of the Project
by the Borrower and the financing thereof as provided in
this Ordinance will serve to promote the general purposes
contemplated by the Enabling Law by (a) sustaining jobs
and employment in Baltimore City; (b) promoting eco-
nomic development in Baltimore City; and (c) encouraging
the increase of industry and a balanced economy in Balti-
more City.
(3) The Bonds and the interest thereon shall not be
general obligations of the City, and shall not be a pledge
1176 ORDINANCES Ord. No. 448
of or involve the faith and credit or the taxing power of
the City, and shall not constitute a debt of the City, all
within the meaning of Section 7 of Article XI of the
Constitution of Marj^land or within the meaning of any
other constitutional, statutory or chai-ter provision limiting
or restricting the sale or issuance of bonds, notes or other
obligations of the City. The Bonds and the interest thereon
shall not constitute or give rise to any pecuniai*>^ liability
of the City. The Bonds and the interest thereon shall be
limited obligations of the City, repayable by the City
solely from the revenue derived from Loan repayments (both
principal and interest) made to the City by the Borrower
on account of the Loan and from any other moneys made
available to the City for such pui-pose. If a Trust Agree-
ment is entered into, the proceeds of the Bonds will be
paid directly to the Trustee to be held and disbursed by
the Trustee as provided in the Trust Agreement to be
approved by the Board in the Resolution. If an Assign-
ment is entered into, and the Project has not been com-
pleted on or before the date of delivery of the Bonds,
the Board will provide in the Resolution that the proceeds
will be paid directly to the Project Fund Trustee and de-
posited by the Project Fund Trustee into the Project Fund
created under the Assignment. If an Assignment is entered
into, and the Board finds and determines that the Project
has been or will be completed on or before the date of
delivery of the Bonds, the Board may pro\ide in the Reso-
lution that no Project Fund will be created under the
Assignment and that the proceeds of the Bonds will be
paid directly to the Borrower, or for the account of the
Borrower, to be used by the Borrower to pay the costs
of, or to reimburse the Borrower for the payment of the
costs of, the completion of the Project. Payments of the
principal of and premium (if any) and interest on the
Loan will be paid by the Borrower directly to the Trustee
as provided in the Trust Agreement or to the Original
Purchaser, its successors and assigns, as provided in the
Assignment, to be approved by the Board in the Resolu-
tion. No such moneys will be commingled with the City^s
funds or \rill be subject to the absolute control of the
City, but will be subject only to such limited supervision
and checks as are deemed necessary or desirable by the
City to insure that the proceeds of the Bonds are used
ORDINANCES 1177
to accomplish the public purposes of the Enabling Law
and this Ordinance. The loan form of transaction author-
ized hereunder shall in no event constitute a capital project
within the meaning of any charter or statutory provision.
The public purposes expressed in the Enabling Law are
to be achieved by facilitating the completion of the Project
by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's
property shared by all holders of the Borrower's obliga-
tions which rank and are secured equally with the Bor-
rower's obligations pursuant to the Loan Agreement, (b)
any lien and security interest created by the Loan Agree-
ment, and (c) any interest created by any other mortgage
or deed of trust or other security instrument executed
and delivered by the Borrower or any third party as se-
curity for the Loan or the Bonds as the Board may provide
for and approve in the Resolution. The security for the
Bonds shall be solely and exclusively (a) the absolute, irre-
vocable and unconditional obligations of the Borrower to
make the payments required by the Loan Agreement, (b)
moneys realized from the liquidation of any lien and se-
curity interest created by the Loan Agreement and of any
lien or security interest created with respect to any prop-
erty as security for the Loan or the Bonds as the Board
may provide for and approve in the Resolution, and (c)
moneys realized from any guaranty of the Bonds or of
the Loan as the Board may provide for and approve in
the Resolution.
(5) The best interests of the City will be served by
selling the Bonds at private (negotiated) sale, as authorized
by the Enabling Law, upon terms and conditions approved
by the Board in the Resolution.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
and as limited obligations of the City and not upon its
full faith and credit, its Bonds, the Baltimore City, Mary-
land Industrial Development Revenue Bonds (Erdman
Shopping Center Project), in the aggregate principal
amount not to exceed $3,500,000, subject to the provisions
1178 ORDINANCES Ord. No. 448
of this Ordinance. The proceeds of the Bonds will be
loaned to the Borrower pursuant to the terms and pro-
visions of the Loan Agreement, to be used by the Borrower
for the sole and exclusive puiiDOse of financing the costs,
charges, fees, and expenses in connection with the com-
pletion of the Project. The Bonds and the interest thereon
shall be limited obligations of the City, repayable by the
City solely from the revenue derived from Loan repay-
ments (both principal and interest) made to the City by
the Borrower pursuant to the Loan Agreement and from
any other moneys made available to the City for such
purpose. The security for the Bonds shall be solely and
exclusively as provided in Section 1 of this Ordinance.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to fur-
ther evidence the present intent of the City to issue the
Bonds in accordance with the terms and provisions of
this Ordinance.
Sec. 4. And be it further ordained, That each of the
Bonds shall bear the descriptive title ''Baltimore City,
Maryland Industrial Development Revenue Bond (Erdman
Shopping Center Project)", provided, that the descriptive
title may contain such other descriptive infoiTnation as
the Board may prescribe in the Resolution (e.g. '*1981
Series") . The Bonds shall bear interest at the rate or rates
of interest to be determined by negotiation with the original
purchaser or purchasers of the Bonds and to be approved
and prescribed by the Board in the Resolution.
Sec. 5. And be it further ordained, That the definitive
Bonds, which may be engraved, printed or typewritten,
including any Trustee's Certificate of Authentication to
be endorsed thereon if the Trust Agreement is entered
into, shall be in such form, not inconsistent with the Ena-
bling Law and the provisions of this Ordinance, as the
Board may approve in the Resolution.
Sec. 6. And be it further ordained. That the Bonds shall
be executed in the name of the City and on its behalf by
ORDINANCES 1179
the Mayor of the City, by his manual or facsimile signa-
ture, and by the Director of Finance of the City, by his
manual or facsimile signature, and the corporate seal of
the City or a facsimile thereof shall be impressed or other-
wise reproduced thereon and attested by the Custodian
of the City Seal, by his manual signature. The Loan Agree-
ment, the Trust Agreement or the Assignment and, where
applicable, all other documents as the Board shall deem
necessary to effectuate the issuance, sale and delivery of
the Bonds, shall be executed in the name of the City and
on its behalf by the Mayor of the City by his manual or
facsimile signature, and the corporate seal of the City or
a facsimile thereof shall be impressed or otherwise re-
produced thereon and attested by the Custodian of the City
Seal by his manual signature. In case any officer whose
signature or a facsimile of whose signature shall appear
on the Bonds or any of the aforesaid documents shall
cease to be such officer before the delivery of the Bonds
or any of the other aforesaid documents, such signature
or such facsimile shall nevertheless be valid and sufficient
for all purposes, the same as if such officer had remained
in office until delivery. The Mayor of the City, the Director
of Finance of the Cit\% the Custodian of the City Seal and
other officials of the City are hereby authorized and em-
powered to do all such acts and things and execute such
documents and certificates as the Board may determine in
the Resolution to be necessary to carry out and comply
with the provisions hereof.
Sec. 7. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time or from time
to time and in one or more series and in such amount or
amounts not exceeding, in the aggregate, the principal
amount of $3,500,000, as the Board shall prescribe in the
Resolution.
Sec. 8. And he it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of such
form and tenor, and shall be payable in such amounts, at
such times and at such place or places as the Board shall
prescribe in the Resolution.
Sec. 9. And be it further ordained, That the Bonds may
be subject to redemption prior to their stated maturities
1180 ORDINANCES Ord. No. 448
upon such teiins and conditions as the Board shall pre-
scribe in the Resolution.
Sec. 10. And be it further ordained. That prior to the
issuance, sale and deliveiy of the Bonds, the Board shall
adopt the Resolution pursuant to which the Board shall :
(a) prescribe the form, tenor, terms and conditions
of and security for the Bonds ;
(b) prescribe the actual amounts, rate or rates of in-
terest (or the method of determining the same), denomi-
nations, date, actual maturity or maturities, and the place
or places of payment of the Bonds, and the terms and
conditions and details under which the Bonds may be called
for redemption prior to their stated maturities;
(c) if a Trust Agreement is entered into, appoint a
bank having trust powers, or a trust company, as Trustee
for the Bonds and, if necessary, appoint a paying agent
or agents for the Bonds, which may be the Trustee;
(d) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
and (iii) such other documents, including (without limita-
tion) mortgages, deeds of trust, guaranties and security
instruments as the Board shall deem necessary to approve
in order to effectuate the issuance, sale and deliveiy of the
Bonds;
(e) determine the time of execution, issuance, sale
and delivery of the Bonds and prescribe any and all other
details of the Bonds;
(f) provide for the direct payment by the Borrower
of all costs, fees and expenses incurred by or on behalf of
the City in connection with the issuance, sale and delivery
of the Bonds, including (without limitation) costs of print-
ing (if any) and issuing the Bonds, legal expenses and
compensation to any person (other than full time em-
ployees of the City) performing services by or on behalf
of the City in connection therewith ;
(g) if the Trust Agreement is entered into, provide
for the issuance and sale (subject to the passage of an
ORDINANCES 1181
appropriate ordinance authorizing the same as may be re-
quired by the time) of one or more series of additional
bonds and one or more series of refunding bonds; and
(h) do any and all things, and authorize the officials
of the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 11. And be it further ordained. That the Loan
Agreement and the Trust Agreement or the Assignment
shall contain such terms, provisions and conditions, not
inconsistent with the Enabling Law and the provisions of
this Ordinance, as the Board shall approve in the Resolution.
Sec. 12. And he it further ordained, That, as authorized
by the Enabling Law, the Bonds shall be sold at private
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 13. And he it further ordained , That the Bonds and
the interest thereon shall not be general obligations of the
City and shall not be a pledge of or involve the faith and
credit or the taxing power of the City, and shall not con-
stitute a debt of the City, all within the meaning of Section
7 of Article XI of the Constitution of Maryland or any
other constitutional, statutory or charter provision limiting
or restricting the sale or issuance of bonds, notes or other
obligations of the City. The Bonds and the interest thereon
shall not constitute or give rise to any pecuniary liability
of the City. The Bonds, and the interest thereon, shall
be limited obligations of the City, the principal of and
interest on w^hich Bonds shall be payable by the City solely
from the revenue derived from Loan repayments (both
principal and interest) made to the City by the Borrower
on account of the Loan and, to the extent provided by the
Board in the Resolution, from the proceeds of the Bonds,
and from any other moneys made available to the City for
such purpose. If the Trust Agreement is entered into, the
proceeds of the Bonds will be paid directly to the Trustee
to be held and disbursed by the Trustee as provided in the
Trust Agreement to be approved by the Board in the Reso-
lution. If an Assignment is entered into and the Project has
not been completed, the Board will provide in the Resolution
1182 ORDINANCES Ord. No. 448
that the proceeds will be paid directly to the Project Fund
Trustee and deposited by the Project Fund Trustee into
the Project Fund thereby created under this Assignment,
or if the Assignment is entered into and the Board finds
and determines that the Project has been or will be com-
pleted on or before the date of delivery of the revenue
bonds, the Board may provide in the Resolution that the
proceeds of the revenue bonds will be paid directly to the
Borrower, or for the account of the Borrower, to be used
by the Borrower to pay the costs of, or to reimburse the
Borrower for payment of the costs of, the completion of
the Project, as provided in the Assignment to be approved
by the Board in the Resolution. No such moneys will be
commingled with the City's funds or will be subject to the
absolute control of the City, but will be subject only to
such limited supervision and checks as are deemed neces-
sary or desirable by the City to insure that the proceeds
of the Bonds are used to accomplish the public purposes
of the Enabling Law and this Ordinance.
Sec. 14. And be it further ordained, That in considera-
tion of the purchase and acceptance of the Bonds by those
who shall hold the Bonds from time to time, the City does
hereby, and by the execution and delivery of the Trust
Agreement or the Assignment to be approved by the Board
shall, set aside or pledge the income and revenue under
the Loan Agreement (other than payments to the City for
indemnification or to reimburse the City for expenses in-
curred by the City itself) to the Trustee or, if the Assign-
ment is entered into, the Original Purchaser, its successors
and assigns, to be used and applied for the payment of
the principal of and interest on the Bonds. Pursuant to the
terms of the Loan Agreement to be approved by the Board
in the Resolution, payments sufficient for the prompt pay-
ment vrhen due of the principal of, premium, if any, and
interest on the Bonds are to be paid by the Borrower to
the Trustee for the benefit of the holders of the Bonds, or,
if the Assignment is entered into, to the Original Pur-
chaser, its successors and assigns, for the account of the
City.
Sec. 15. And be it further ordained, That the Borrower
shall agree that:
I
ORDINANCES 1183
(a) It will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) It and its developers v^ill v^^ork with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 16. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision,
sentence, clause, section or part hereof is held illegal, in-
valid or unconstitutional or inapplicable to any person or
circumstances, such illegality, invalidity or unconstitution-
ality, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other
persons or circumstances. It is hereby declared to be the
legislative intent that this Ordinance would have been
passed if such illegal, invalid or unconstitutional provision,
sentence, clause, section or part had not been included
herein, and if the person or circumstances to which this
Ordinance or any part hereof are inapplicable had been
specifically exempted herefrom.
Sec. 17. And be it further ordained, That if the Bonds
are not issued and sold within six months from the date
on which this Ordinance is approved by the Mayor of the
City, the authorization provided in this Ordinance for the
City to issue and sell the Bonds shall expire; provided,
however, that the Board may, after showing of good
cause at a public hearing held before the Board, extend
such authorization for one additional term not to exceed
six months. The Board, in its sole discretion, shall determine
the sufficiency, or lack thereof, of the reasons presented
for any requested extension of this Ordinance. If an ex-
tension is granted, notice of such extension and the reasons
therefor must be sent to the City Council.
1184 ORDINANCES Ord. No. 449
Sec. 18. And be it further ordained, That this Ordinance
shall take from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 449
(Council No. 822)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS—
(HOBELMANN PORT SERVICES, INC. PROJECT)
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore (the "City") to issue
and sell, at any time or from time to time and in one
or more series, as limited obligations of the City and
not upon its full faith and credit, its industrial develop-
ment revenue bonds, in the aggregate principal amount
not to exceed $5,000,000, pursuant to the provisions of
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended, for the sole
and exclusive purpose of financing the costs of the com-
pletion by Chesapeake Venture, Inc., a Maryland cor-
poration, which is a wholly-owned subsidiary of Hobel-
mann Port Services, Inc., a Delaware corporation, of a
certain project in Baltimore City consisting of the ac-
quisition and improvement of real property located at
1900 Chesapeake Avenue in Baltimore City, and the
improvement of other real property owmed or leased
by Hobelmann Port Services, Inc. or its wholly-owned
subsidiary, Chesapeake Venture, Inc., in Fairfield, Balti-
more City, including the construction of a deep water
berth, all of which will be used in connection with the
business of importing automobiles ; authorizing the Mayor
of the City, on behalf of the City, to accept the letter
of intent dated October 9, 1981 from Hobelmann Port
Services, Inc. to the City; making ceii:ain legislative
findings; authorizing and empowering the Board of Fi-
ORDINANCES 1185
nance of the City, by a resolution or resolutions adopted
prior to the issuance, sale and delivery of any series of
such bonds, to (a) prescribe, among other things, but
not limited to, the form, terms, provisions, manner or
method of issuing and selling (including negotiated as
well as competitive bid sale), and the time or times of
issuance, and any and all other details of such bonds,
and (b) do any and all things necessary, proper or
expedient in connection with the issuance and sale of
such bonds; providing that Hobelmann Port Services,
Inc. shall agree to submit any plans and specifications
to, and to coordinate with, the Department of Housing
and Community Development in connection with the
completion of such project; providing that such bonds
(or bond anticipation notes issued in anticipation of
the issuance of such bonds) must be issued and sold
within six months from the date this Ordinance is ap-
proved by the Mayor, unless the Board of Finance ap-
proves one six month extension as provided in this
Ordinance; authorizing the issuance of notes in antici-
pation of the issuance of such revenue bonds; and gen-
erally providing for and determining various matters
and details in connection with the issuance and sale of
such bonds and bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended, (the ''Enabling
Law"), empowers Mayor and City Council of Baltimore
(the "City") to borrow money to finance undertakings
for the accomplishment of any of the purposes, objects
and powers of the City and in connection therewith to
issue bonds, notes, or other obligations (including re-
funding bonds, notes or other obligations), all of which
shall be fully negotiable, payable, as to both principal
and interest, solely from and secured solely by a pledge
of (I) the revenues from or arising in connection with
the property, facilities, developments and improvements
whose financing is undertaken by the issuance of such
bonds, notes or other obligations, (II) the revenues from
or arising in connection with anj^ contracts, mortgages or
other securities purchased or otherAvise acquired with
1186 ORDINANCES Ord. No. 449
the proceeds of such bonds, notes or other obligations,
(III) the contracts, mortgag-es or other securities pur-
chased or otherwise acquired with the proceeds of such
bonds, notes or other obligations, or (IV) any combina-
tion of (I), (II) or (III). The purposes, objects and
powers of the City contemplated by the Enabling Law
include the relief of conditions of unemployment in Bal-
timore City, encouraging the increase of industiy and a
balanced economy in Baltimore City, promoting economic
development in Baltimoi^ City, and promoting the health,
welfare and safety of the residents of Baltimore City.
The City has received a letter of intent dated Octo-
ber 9, 1981 (the '^Letter of Intent") from Hobelmann
Port Services, Inc., a Delaware corporation (the Parent),
pursuant to which the Parent has requested the City to
participate in the financing of the costs of the comple-
tion by Chesapeake Venture, Inc., a Maryland corpora-
tion (the Borrower) , which is a wholly-owned subsidiary
of the Parent, of a certain project in Baltimore City,
Maryland (the "Project"), by issuing and selling the
City's industrial development revenue bonds in the ag-
gregate principal amount not to exceed $5,000,000 (the
''Bonds"), and by making the proceeds of the Bonds
available to the Borrower to be used by the Borrower
for the sole and exclusive puii^ose of financing the costs
of the completion of the Project by the Borrower.
The Project, which is an ''undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition of 9.72 acres of real property
located at 1900 Chesapeake Avenue in Baltimore City,
(b) the construction of a building containing approxi-
mately 30,000 square feet for use in its business of im-
porting automobiles on said property, (c) the construc-
tion of a deep water berth on property located at 2001
Chesapeake Avenue in Baltimore City, and (d) grading,
paving and other improvements of facilities owned or
leased by the Borrower in Faii*field, Baltimore City, as
may be necessary or useful in connection with the opera-
tion of Borrower's business.
The Enabling Law provides that the City may au-
thorize and empower the Board of Finance of the City
ORDINANCES 1187
(the "Board") by resolution to determine and set forth
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW, THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW :
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the costs of completion of
the Project, will facilitate and expedite the completion of
the Project by the Borrower.
(2) The completion of the Project by the Borrower,
and the financing of the costs of such completion as pro-
vided in this Ordinance, will serve to promote the general
purposes contemplated by the Enabling Law by (a) sus-
taining jobs and employment in Baltimore City; (b) pro-
moting economic development in Baltimore City; and (c)
encouraging the increase of industry and a balanced econ-
omy in Baltimore City.
(3) Any and all of the Bonds shall not be general ob-
ligations of the City, and shall not be a pledge of, or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all vnthin
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other constitu-
tional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obligations
of the City. All of the Bonds shall be limited obligations
of the City, and shall be fully negotiable, payable, as to
both principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in connec-
tion with the Project, (U) the revenues from or arising
1188 ORDINANCES Ord. No. 449
in connection with any contracts, mortgages or other se-
curities purchased or otherwise acquired with the proceeds
of the Bonds, (III) the contracts, mortgages or other se-
curities purchased or otherwise acquired with the pro-
ceeds of the Bonds, or (IV) any combination of (I), (II)
or (III), all as the Board may approve by a resolution or
resolutions adopted prior to the issuance, sale and delivery
of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue bonds,
in the aggregate principal amount not to exceed $5,000,000
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower under
terms and conditions approved by the Board and set forth
in a Resolution, and used by the Borrower for the sole and
exclusive purpose of financing the costs of the completion
of the Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the
Bonds, and the Mayor of the City is hereby authorized
to accept the Letter of Intent on behalf of the City in order
to further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions of
this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolutions adopted prior
to the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
ORDINANCES 1189
nance, pursuant to a trust agreement or similar agree-
ment, (ii) the form of any such trust agreement or similar
agreement, as provided in the Enabling Law, and (iii)
such provisions in any such trust agreement or similar
agreement as the Board may deem reasonable and proper
for the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der v^hich the proceeds of the Bonds v^ill be made available
to the Borrower to finance the costs of the completion of
the Project; and
(d) do any and all things necessary, proper or expe-
dient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all
of the Bonds shall not be general obligations of the City
and shall not be a pledge of or involve the faith and credit
or the taxing power of the City, and shall not constitute
a debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City. All of the Bonds shall be limited
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
1190 ORDINANCES Ord. No. 449
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community De-
velopment for approval, and that the Department of Hous-
ing and Community Development may refuse approval of
any plans and specifications for aesthetic or functional
reasons ; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all
of the Bonds shall be executed in the name of the City
and on its behalf by the Mayor of the City, by his manual
or facsimile signature, and by the Director of Finance
of the City, by his manual or facsimile signature, and the
corporate seal of the City, or a facsimile thereof, shall be
impressed or otherwise reproduced thereon and attested
by the Custodian of the City Seal, by his manual signature.
Any trust agreement or other documents as the Board
shall deem necessary to effectuate the issuance, sale and
delivery of the Bonds shall be executed in the name of the
City and on its behalf by the Mayor of the City by his
manual or facsimile signature, and the corporate seal of
the City or a facsimile thereof shall be impressed or other-
wise reproduced thereon and attested by the Custodian of
the City Seal by his manual signature. In case any officer
whose signature, or a facsimile of whose signature, shall
appear on the Bonds or any of the aforesaid documents shall
cease to be such officer before the delivery of the Bonds
or any of the other aforesaid documents, such signature or
such facsimile shall nevertheless be valid and sufficient for
all purposes, the same as if such officer had remained in
office until delivery. The Mayor of the City, the Director
of Finance of the City, the Custodian of the City Seal
and other officials of the City are hereby authorized and
empowered to do all such acts and things, and execute
such documents and certificates as the Board may deter-
mine by resolution to be necessary to carry out and comply
with the provisions hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
ORDINANCES 1191
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of the
City or by the Chief, Bureau of Treasury Management,
of the City, or by such other appropriate official of the
City as may be designated by the Mayor of the City to
execute such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1981 Cu-
mulative Supplement) , as amended (the ''Bond Anticipation
Note Enabling Legislation")- Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of such bond anticipation notes ;
(c) approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes will
be made available to the Borrower to finance the costs of
the completion of the Project; and
(d) do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and delivery of
such bond anticipation notes.
1192 ORDINANCES Ord. No. 449
In accordance with the Bond Anticipation Note Enabling
Legislation, the City hereby covenants to pay any bond
anticipation notes issued pursuant to this Section of this
Ordinance and the interest thereon from the proceeds of
the Bonds in anticipation of the sale of which such notes
are issued, and the City hereby further covenants to issue
such Bonds, as the case may be, when, and as soon as,
the reason for deferring the issuance of the bonds no longer
exists. The timely issuance of such Bonds, however, is
dependent upon matters not within the control of the City,
including (without limitation) the existence of a purchaser
or purchasers for such Bonds at the time the reason for
deferring the issuance of the Bonds no longer exists and
the effectiveness of various actions taken by the Borrower,
its officers, agents and employees.
Sec. 10. A7id be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitution-
ality, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the legis-
lative intent that this Ordinance would have been passed if
such illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included herein, and
if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And he it further ordained, That either the
Bonds or bond anticipation notes issued pursuant to Sec-
tion 9 of this Ordinance in anticipation of the issuance of
the Bonds must be issued and sold within six months from
the date on which this Ordinance is approved by the i\Iayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months from
ORDINANCES 1193
the date on which the first six month period expired. The
Board, in its sole discretion, and without action by the City
Council, shall determine the sufficiency, or lack thereof, of
the reasons presented for any requested extension of the
six month period. If an extension is granted, notice of
such extension and the reasons therefor must be sent to
the City Council. To the extent that neither the Bonds nor
such bond anticipation notes are issued and sold within
twelve months from the date on which this Ordinance is
approved by the Mayor of the City, the authority provided
in this Ordinance for the City to issue and sell the Bonds
and such bond anticipation notes shall expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
No. 450
(Council No. 823)
AN ORDINANCE concerning
ISSUANCE OF INDUSTRIAL DEVELOPMENT
REVENUE BONDS— WEST LOMBARD STREET
PARKING FACILITY PROJECT
FOR the purpose of authorizing and providing for the is-
suance from time to time, by The Mayor and City Council
of Baltimore, Maryland of its revenue bonds, designated
"Industrial Development Revenue Bonds (West Lombard
Street Parking Facility Project)" in an aggregate prin-
cipal amount not exceeding $7,500,000 pursuant to the
provisions of Sections 266A through 266-1, inclusive, of
Article 41 of the Annotated Code of Maryland (1978
Replacement Volume and 1980 Cumulative Supplement)
or Subsection (50) of Article II of the Charter of Bal-
timore City (1964 Revision, as amended) in order to
loan the proceeds to C C & F Baltimore Associates
1194 ORDINANCES Ord. No. 450
Limited Partnership, a limited partnership to be formed
or such other industrial concern consisting of such cor-
poration, partnership or joint venture as may be desig-
nated by the Mayor and City Council of Baltimore
acting through the Mayor as the nominee of such City,
for the sole and exclusive purpose of financing the acqui-
sition of certain parking facilities in the City of Balti-
more as provided in this ordinance; making certain
legislative findings, among others, concerning the public
benefit and purpose of the revenue bonds; providing
that such revenue bonds (a) shall be payable solely and
only from revenue derived from payments to the City on
account of such loan and (b) shall not ever constitute
within the meaning of any constitutional or charter pro-
vision or otherwise (i) an indebtedness of Mayor and
City Council of Baltimore, or any other political sub-
division or (ii) a charge against the general credit or
taxing powers of such City; providing that this ordi-
nance shall constitute a commitment by such City to
issue the revenue bonds so authorized ; providing for the
private (negotiated) sale of such revenue bonds unless
the City Council or Board of Finance of Baltimore, Mary-
land, upon the request of the Developer, shall deter-
mine by resolution to sell such revenue bonds at public
sale; providing that certain matters pertaining to such
revenue bonds, including (without limitation) amounts
and dates of any series of such revenue bonds, shall be
determined administratively at or prior to the time of
such sale of any series of such revenue bonds; dele-
gating various matters to the Board of Finance of the
City, including (without limitation) the sale of any
series of such revenue bonds, the establishment of the
interest rate or rates at the time of such sale and the
appointment of a trustee or escrow agent to act under
the ordinance as a trustee or escrow agent for all moneys
received by the City hereunder; providing that there
shall be determined by resolution or by other appropriate
action all other matters pertaining to the issuance, sale
and delivery of any series of such revenue bonds, in-
cluding (without limitation) the provisions of trust be-
tween the City and the trustee, the execution of a loan
agreement or such other contracts, agreements or in-
struments which the City may deem appropriate to effect
ORDINANCES 1195
the financing of the parking facilities, the creation of
a loan or construction fund to be held by the trustee or
escrow agent and provision for its disbursement, pro-
vision for the investment of moneys held by the trustee
or escrov^ agent, provision of remedies for bondholders
in the event of default, and provision for the enactment
of supplemental ordinances and resolutions; providing
that the authorization of such revenue bonds shall
expire if such revenue bonds are not issued and sold
vdthin a certain time from the date on which this ordi-
nance is approved, unless such authorization is extended
by the Board of Finance as provided herein; and gen-
erally providing for and determining various matters in
connection with the authorization, issuance, security, sale
and payment of such revenue bonds.
RECITALS
Sections 266A through 266-1, inclusive, of Article 41
of the Annotated Code of Maryland (1978 Replacement
Volume and 1980 Cumulative Supplement), as re-enacted,
with amendments, by Chapter 352 of the Laws of Mary-
land of 1972, as amended, (the "Act") constitute those
provisions of Maryland law authorizing the issuance
of industrial revenue bonds by all the counties and mu-
nicipalities of the State of Maryland (the "State").
The Act now empowers the counties and municipali-
ties of the State (including the Mayor and City Council
of Baltimore) to issue revenue bonds and to loan the
proceeds of the sale of such revenue bonds to an "in-
dustrial concern" to finance the "acquisition" by such
concern of "industrial buildings", as those terms are
defined in the Act. The Act declares it to be the legisla-
tive purpose to relieve conditions of unemployment in
the State, to encourage the increase of industry and a
balanced economy in the State, to assist in the reten-
tion of existing industry in the State, to promote eco-
nomic development, and in this manner to promote the
health, welfare, and safety of the residents of each of
the counties and municipalities of the State.
Subsection (50) — Revenue Bonds and Obligations of
Article II of the Charter of Baltimore City (1964 Re-
1196 ORDINANCES Ord. No. 450
vision, as amended) (''Subsection 50") authorizes the
Mayor and City Council of Baltimore to borrow money
through the issuance and sale of its revenue bonds for
the accomplishment of any of the purposes, objects and
powers of the City (the Act and Subsection 50 being
herein collectively referred to as the ''Enabling Legis-
lation").
Mayor and City Council of Baltimore (the "City")
has determined to issue and sell not exceeding §7,500,000
aggregate principal amount of its revenue bonds, here-
inafter designated "Industrial Development Revenue
Bonds (West Lombard Street Parking Facility Project)"
(the "Bonds") and to loan the proceeds of such Bonds
to C C & F Baltimore Associates Limited Partnership,
a limited partnership to be formed or such other in-
dustrial concern consisting of such corporation, part-
nership or joint venture or other entity as may be
designated by the City acting through the Mayor as the
nominee of the City (the "Developer") on the terms and
conditions to be set forth in a loan agreement executed
pursuant to this ordinance (the "Loan Agreement") in
order to finance the acquisition of certain parking facili-
ties in the City as described below (the "Facilities").
The Facilities consist of a multi-story parking facility
having approximately 750 spaces to be located in the
vicinity of the block bounded by Lombard, Howard and
Pratt Streets and Hopkins Place in the City, machinery
or equipment necessary or useful for the parking fa-
cility, and the site or interests in land necessary or
desirable for the parking facility, together with roads,
or other rights of access, utilities or other necessary
facilities. The financing of the acquisition of the Facilities
may involve the leasing of the Facilities to an entity
other than the Developer in order to provide for efficient
management of the Facilities. It is intended that this
ordinance constitute an ordinance or resolution within
the meaning of Section 266B(d) of the Act.
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Legis-
lation, it is hereby found and determined, as follows :
ORDINANCES 1197
(1) The issuance of revenue bonds by the City pur-
suant to the Enabling Legislation in order to loan the pro-
ceeds to the Developer for the sole and exclusive purpose
of acquiring the Facilities will facilitate and expedite
the acquisition of the Facilities by the Developer;
(2) The accomplishment of the transactions contem-
plated and authorized by this ordinance, including (with-
out limitation) the acquisition of the Facilities by the De-
veloper and the financing thereof will (i) sustain and in-
crease jobs and employment, thereby relieving conditions
of unemplojonent in the State and in the City; (ii) en-
courage the increase of industry and a balanced economy
in the State and in the City; (iii) assist in the retention of
existing industry in the State and in the City; (iv) pro-
mote economic development; and (v) promote the health,
welfare and safety of the residents of the City and of the
State.
(3) In addition to authorizing the City itself to acquire
and either to lease or to sell such facilities to an indus-
trial concern, the Enabling Legislation, as an alternative
procedure, authorizes financing of the Facilities to be ac-
complished in the form of a loan to the Developer. The
loan form of transaction avoids indirect costs and burdens
on the City by not requiring any direct involvement by
the City in the acquisition, ownership or administration
of such facilities; however, it permits controls to be im-
posed on the use of the proceeds of the Bonds to insure
that the public purposes of the Enabling Legislation and
the Bonds are fully accomplished. It is, therefore, in the
best interests of the citizens of the City to finance the Facil-
ities by a loan to the Developer. This ordinance contem-
plates and authorizes a transaction in the form of a loan
of the proceeds of the Bonds by the City to the Developer,
rather than a transaction in the form of a lease or sale of
the Facilities. Accordingly, this ordinance and the Loan
Agreement hereby authorized contain such provisions as
the City deems appropriate to effect the financing of the
Facilities by the loan form of transaction.
(4) Neither the Bonds nor interest coupons issued un-
der the authority of the Enabling Legislation constitute
an indebtedness of the City or a charge against the general
1198 ORDINANCES Ord. No. 450
credit or taxing powers of the City within the meaning
of any constitutional provision or provisions of the City
Charter or statutory limitation and shall never constitute
or give rise to any pecuniary liability of the City. The
principal of and interest on the Bonds shall be payable
from, and secured solely and only by a pledge of, the reve-
nues derived from loan repayments under the Loan Agree-
ment. The principal amount of the loan and the payments
to be made by the Developer pursuant to the Loan Agree-
ment will be paid directly to, and will be disbursed by, the
independent trustee or escrow agent appointed by the
Board of Finance of the City pursuant hereto; no such
moneys will be commingled with the City's funds or be
subject to the absolute control of the City but only to such
limited supervision and checks as are deemed necessaiy or
desirable to insure that the proceeds of the Bonds are
used to accomplish the public purposes of the Enabling
Legislation and this ordinance. The Act provides that a
loan form of transaction thereunder shall not constitute
a capital project within the meaning of any charter or
statutory provision. The public purposes expressed in the
Enabling Legislation are intended to be achieved by facil-
itating the acquisition of the Facilities by the Developer.
(5) The security for the Bonds shall be solely and ex-
clusively the absolute, irrevocable, unconditional obligation
of the Developer to make the pajonents required by the
Loan Agreement. Accordingly, this ordinance definitely
fixes and determines that the amount of revenue necessary
to be set apart and applied to the pa\Tnent of principal,
interest and premium of the Bonds shall be the entire
amount of the receipts and revenues of the City from pay-
ments under the Loan Agreement except for any rights of
the City to indemnification and to payments for the City's
administrative expenses.
(6) (a) No part or proportion of the receipts and
revenues of the City from the loan shall be set aside as a
depreciation account (mentioned in the Act) since such
a depreciation account would (i) be inconsistent with the
transactions authorized hereby and (ii) place an unreason-
able burden on the Developer so as to adversely affect the
feasibility of the transactions and thus frustrate the leg-
islative purposes of the Act and (b) a covenant such as
ORDINANCES 1199
that permitted by Section 266G(c) of the Act need be in-
cluded in the Loan Agreement authorized hereby.
Sec. 2. And he it further ordained, That this ordinance
is intended to be, and shall constitute, a binding and en-
forceable commitment by the City to the Developer to issue
and deliver the Bonds authorized hereby in accordance
with the terms hereof. It is contemplated that the Devel-
oper may proceed with the acquisition of the Facilities
prior to the issuance and delivery of the Bonds authorized
hereby in reliance upon the enactment of this ordinance
by the City.
Sec. 3. And be it further ordained. That the issuance,
sale and delivery of not exceeding $7,500,000 aggregate
principal amount of revenue bonds, hereby designated
"Industrial Development Revenue Bonds (West Lombard
Street Parking Facility Project)", are hereby authorized,
subject to the provisions of this ordinance, such Bonds
to be solely and exclusively payable from, and secured by,
the revenue derived from payments on the loan to the
Developer as provided herein. The aggregate principal
amount of Bonds issued, sold and delivered pursuant to
this ordinance shall not exceed $7,500,000 unless such
amount shall be increased by an ordinance supplemental
hereto.
The City Council hereby recognizes the function of the
Mayor and the Board of Finance in making the executive
and administrative determinations necessary for the issu-
ance of bonds of the City. This ordinance, therefore, pro-
vides that the Board of Finance may make certain admin-
istrative determinations in connection with the issuance
and sale of the Bonds, such determinations to be effective
only after approval by the Mayor or Acting Mayor. The
provisions of this ordinance (including Sections 3, 4, 5,
6, 7 and 9 hereof) contemplate that prior to the sale of
any series of Bonds, certain matters in connection with
the authorization, issuance, security, sale and payment of
the Bonds will be determined administratively by resolution
or resolutions of the Board of Finance of the City. Such del-
egation of authority to the Board of Finance is subject, how-
ever, to the authority of the City Council (prior to (1) the
1200 ORDINANCES Ord. No. 450
date of submission of an underwriting agreement or bond
purchase agreement to the underwriters for, or any pur-
chasers of, any series of Bonds (such date to be deter-
mined by the Board of Finance in accordance with Sec-
tion 5 hereof) or (2) in the event the series of Bonds
is sold at public sale, the date of distribution of a pre-
liminary official statement, offering memorandum, or simi-
lar document in connection with the sale of the Bonds, or
(3) in any event, the sale of the Bonds) to make any
or all determinations, by administrative resolution or other
appropriate action, which are authorized to be made by
the Board of Finance pursuant to this ordinance, in which
event, all such determinations made by the City Council
shall be effective without further action by, and be binding
on, the Board of Finance.
The Bonds authorized by this ordinance may be issued
in one or more series, and each such series shall be identi-
fied by a letter designation, so that the first series (if the
issuance of more than one series of Bonds hereunder is
then contemplated) shall be designated ''Industrial Devel-
opment Revenue Bonds (West Lombard Street Parking
Facility Project), Series A". The Bonds may be redesig-
nated by the Board of Finance by resolution in order to
reflect the name of the entity to whom the loan is to be
made, to set forth the then-current name of the Facilities
or to clarify any matters relating to the Facilities or the
Developer. The Bonds may be further identified by the
year of issue or such other appropriate designation as
the Board of Finance may determine by resolution adopted
prior to the delivery of the Bonds. The aggregate prin-
cipal amount of Bonds to be issued pursuant to this ordi-
nance at any one time shall be determined by the Board
of Finance by resolution adopted prior to the delivery of
the Bonds.
In the event more than one series of Bonds is issued
hereunder, it is contemplated that a separate series (which
may be evidenced by a single instrument) of notes or
other obligations of the Developer (evidencing the obliga-
tion of the Developer to repay the loan from the City) be
issued to correspond with, and secure, each separate series
of Bonds issued hereunder.
ORDINANCES 1201
Unless the Board of Finance shall specify a different
date in its resolution hereinafter described the Bonds of a
series of Bonds shall be dated as of the first day of the
month next following the date on which such series of
Bonds is sold and shall bear interest at an annual rate
or rates payable semi-annually following the date of such
series of Bonds.
IThe Bonds of each series of Bonds issued hereunder
shall mature on such date or dates as may be determined
in the manner hereinafter described, but the last maturity
of any such series of Bonds shall in no event exceed a
period of thirty (30) years from the date of such series
of Bonds (or such later date as may be permitted under the
terms of the Enabling Legislation in effect on the date
of such series of Bonds). If no maturity or maturities for
a series of Bonds is determined in the manner hereinafter
described, all of the Bonds of such series shall mature on
the date thirty (30) years from the date of such series
of Bonds (or such later date as may be permitted under
the terms of the Enabling Legislation in effect on the
date of such series of Bonds) .
Sec. 4. And be it further ordained, That, prior to the
delivery of any series of Bonds, the Board of Finance
shall adopt a resolution or resolutions which shall pre-
scribe the principal amount of Bonds to be issued as a
series at any one time, the maturity or maturities, the
redemption provisions, and the sinking fund requirements,
if any, for such series of Bonds.
Prior to the delivery of any series of Bonds, the Board
of Finance may also adopt a resolution or resolutions
which may prescribe (i) the date of issue of such series
of Bonds, (ii) any additional terms necessary or appro-
priate to reflect any matters provided by resolution and
(iii) such other matters as may be deemed appropriate
by the Board of Finance.
Any resolution or resolutions adopted pursuant to this
section of this ordinance shall be deemed to be of an admin-
istrative nature and shall be effective upon approval by
the Mayor or Acting Mayor of the City.
1202 ORDINANCES Ord. No. 450
Sec. 5. And he it further ordained, That, unless other-
wise provided by a resolution of the Board of Finance
adopted upon request of the Developer, each series of the
Bonds shall be sold at private (negotiated) sale as author-
ized by the Enabling Legislation, upon the terms and con-
ditions determined by the Board of Finance as hereinafter
authorized.
Authority is hereby conferred on the Board of Finance
of the City to take all necessaiy and appropriate actions on
behalf of the City to effect the sale of the Bonds to an
undel•^vriter for the Bonds selected by the Developer and
approved by the Board of Finance or to effect the direct
placement of the Bonds with one or more financial insti-
tutions or other qualified institutions or other qualified
investors, such actions to include, but are not limited to,
the following:
(1) to prepare and distribute, in conjunction vn.\h
representatives of the Developer and the prospective under-
writers for or purchasers of each series of the Bonds, both
a preliminary and a final official statement in connection
with the sale of each series of the Bonds, if such pre-
liminary official statement and final official statement are
determined to be necessary or desirable for the sale of
each of the Bonds; provided, hotvever, that any such pre-
liminary official statement shall be clearly marked to indi-
cate that it is subject to completion and amendment;
(2) if the series of the Bonds are sold at private
(negotiated) sale, to determine the date, time and place
when an underwriting or purchase agreement shall be sub-
mitted by the underwriters or purchasers of the series of
the Bonds, such agreement to specify the interest rate or
rates proposed to be paid on the Bonds of the series, the
price at which such series of the Bonds are to be sold to
such undenvriters or purchasers, and such other matters
as the underwriters or purchasers and the Board of Finance
may deem necessary or desirable in order to sell and de-
liver the series of the Bonds ;
(3) if the series of the Bonds is sold at public sale,
to determine the date, time and place when proposals will
be accepted for the series of the Bonds, such proposals to
specify the interest rate or rates proposed to be paid on
ORDINANCES 1203
Bonds of the series, the price to be paid for the series of
the Bonds, and such other matters as the Developer and
the Board of Finance may deem necessary or desirable in
•order to sell and deliver the series of the Bonds and to
award the series of the Bonds at public sale to the success-
ful bidder for the series of the Bonds ;
(4) if the series of the Bonds is to be placed directly
with one or more financial institutions or other qualified
investors, to specify the conditions under which the series
of the Bonds are to be placed directly with such financial
institutions or other qualified investors and to approve the
terms of any commitment for the purchase of the series
of the Bonds, provided, kotvever, that such direct place-
ment and such commitment complies with all applicable
securities laws ;
(5) to appoint a bank having trust powers, or a trust
company, as trustee for the Bonds to be issued pursuant
to this ordinance;
(6) to determine the interest rate or rates to be paid
•by the City on the Bonds, but only after the Developer
shall have given the City written approval of such interest
rate or rates through the Developer's acceptance of the
terms of any agreement executed and delivered by the
City for the sale of the Bonds or of the terms of any com-
mitment issued for the purchase of the Bonds ; and
(7) in order to insure that each series of the Bonds
is issued without direct cost to the City, to provide for
the payment, directly by the Developer, of all costs, fees
and expenses incurred by or on behalf of the City in con-
nection with the issuance of each series of the Bonds,
such payments to include (without limitation) compensa-
tion to any persons (other than full-time employees of the
City) performing services by or on behalf of the City in
connection with the transactions contemplated by this
ordinance.
Authority is hereby conferred on the Mayor or Acting
Mayor of the City to take the following actions and to
make the following commitments on behalf of the City:
(a) to execute and deliver a loan agreement by and
between the City and the Developer in the form deter-
1204 ORDINANCES Ord. No. 450
mined by resolution of the Board of Finance approved by
the Mayor or Acting Mayor as authorized by Section 7
of this ordinance; and
(b) if the series of the Bonds are sold at private
(negotiated) sale, to execute and deliver, as a binding
and enforceable obligation of the City, the underwriting
or purchase agreement for the Bonds by and between the
City and the underwriters or purchasers of the Bonds
and to accomplish any and all actions necessary or deemed
appropriate by any of them to issue and deliver the
Bonds to such underwriters or purchasers in accordance
with the provisions of this ordinance and the underwriting
or purchase agreement;
(c) if the series of the Bonds is sold at public sale,
to execute and deliver any and all documents necessary
or deemed appropriate by the Developer and such City
officials to consummate the sale of the series of the Bonds
at public sale and to accomplish any and all actions neces-
sary or deemed appropriate by either of them to issue
and deliver the series of the Bonds to such undenvriters
or purchasers in accordance with the provisions of this
ordinance and the contract of sale vnth the successful bid-
der for the series of the Bonds.
Sec. 6. And be it further ordained, That, in authorizing
the sale of revenue bonds to finance the Facilities for the
Developer pursuant to the Enabling Legislation, the
Mayor and Board of Finance are hereby empowered to
provide that the revenue bonds authorized by this ordi-
nance and any revenue bonds authorized for such pur-
pose by other ordinances, may be consolidated and sold
as one or more issues or series of revenue bonds, without
regard to the date of enactment of any ordinance au-
thorizing the issuance of such revenue bonds. The aggre-
gate principal amount of revenue bonds authorized by this
ordinance may be increased, from time to time, and the
description of the Facilities may be supplemented or modi-
fied by ordinances supplemental to this ordinance. Nothing
contained in this ordinance is intended to require the
adoption of an ordinance supplemental to this ordinance
to authorize the deletion of any one or more items of the
parking facilities constituting the Facilities. The Mayor
ORDINANCES 1205
and Board of Finance are hereby expressly authorized, in
their discretion and based upon their determinations from
time to time, to omit any part of the Facilities from the
Facilities to be financed by revenue bonds issued pursuant
to this ordinance. It is the purpose and intent of this
section that the Mayor and Board of Finance be afforded
broad discretion in the structuring and scheduling of reve-
nue bond issues, whether authorized by this ordinance or
otherwise, to finance the Facilities for the Developer in
order that the public purpose of the Enabling Legislation
and this ordinance may be realized.
Sec. 7. And be it further ordained, That, prior to the
sale of any series of Bonds, the Board of Finance of the
City may (without limitation) deteiTtiine administratively
by resolution or by other appropriate action:
(1) the provisions of trust between the City and the
trustee ;
(2) the manner of execution, authentication, registra-
tion and transfer of the Bonds;
(3) provisions for authentication and delivery of the
bonds;
(4) the provisions of the Loan Agreement between the
City and the Developer and of such other contracts, agree-
ments or instruments as the Board of Finance of the City
may deem appropriate to effect the financing of the
Facilities ;
(5) the terms of the note or other evidence of the
obligation of the Developer issued for each series of Bonds;
(6) provision for creation, holding and disbursement
of an escrow fund to be held by the trustee or escrow agent ;
(7) provisions for creation, holding and disbursement
of any other funds and accounts to be held by the trustee ;
(8) provisions for the application of receipts and reve-
nues from the City on account of the loan;
(9) provisions for the security for and investment of
moneys held by the trustee or escrow agent;
1206 ORDINANCES Ord. No. 450
(10) the details of the procedure for the redemption
of the Bonds;
(11) remedies for holders of the Bonds in the event of
default ;
(12) the duties, rights and immunities of the trustee
or escrow agent ;
(13) the manner of execution of instruments by holders
of the Bonds and the method of proof of o^\^lership of the
Bonds;
(14) provisions for modification of this ordinance, the
Loan Agreement, and any resolution or other action of the
Mayor, City Council and Board of Finance pertaining to
the Bonds;
(15) provisions for defeasance;
(16) the fomis of the Bonds, coupons and the authen-
tication certificate;
(17) provisions for redesignating the Bonds ^^^th a
designation different from that given in this ordinance ; and
(18) such other matters in connection with the author-
ization, issuance, security, sale and pajonent of the Bonds
as may be deemed appropriate by the Board of Finance.
Any resolution or resolutions adopted pursuant to this
ordinance shall be deemed to be of an administrative nature
and shall be effective upon approval by the Mayor or Act-
inpf ]Mavor of the Citv.
Sec. 8. And be it further ordained, That the Developer
shall agree that :
(a) It will submit any plans and specifications for the
acquisition of the Facilities to the Department of Housing
and Community Development for approval, with the under-
standing that, in addition to the economic feasibility of
the acquisition of the Facilities, the Department of Hous-
ing and Community Development may consider, without
limitation, the suitability of any site plan, architectural
ORDINANCES 1207
treatment, building plans, elevations, materials, color con-
struction details, access, parking, loading, landscaping,
identification signs, exterior lighting, refuse collection de-
tails, streets, sidewalks, and harmony between the plans
and the surroundings of the proposed Facilities and that
the Department of Housing and Community Development
may refuse approval of any such plans and specifications
for aesthetic or functional reasons; and
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 9. And he it further ordained, That if the Bonds
are not issued and sold within eighteen months from the
date on which this ordinance is approved by the Mayor or
Acting Mayor of the City, the authorization provided in
this ordinance for the City to issue and sell the Bonds
shall expire; provided however, that the Board of Finance
of the City may, after a showing of good cause at a public
hearing held before the Board of Finance, extend such
authorization for two additional terms not to exceed nine
months each. The Board of Finance, in its sole discretion,
shall determine the sufficiency, or lack thereof, of the rea-
sons presented for any requested extension of this ordi-
nance. If an extension is granted, notice of such extension
and the reasons therefor shall be sent to the City Council.
Sec. 10. And be it further ordained, That the provisions
of this ordinance are severable, and if any provision, sen-
tence, clause, section or part thereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of the
remaining provisions, sentences, clauses, sections or parts
of the ordinance or their application to other persons or
circumstances. It is hereby declared to be the legislative
intent that this ordinance w^ould have been adopted if such
illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included therein, as
if the person or circumstances to which the ordinance or
any part thereof is inapplicable had been specifically ex-
empted therefrom.
1208 ORDINANCES Ord. No. 451
Sec. 11. A7id be it further ordained, That this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 451
(Council No. 824)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS-
DAVID H. MURDOCK DEVELOPMENT COMPANY
(AREA 20 PARKING PROJECT)
FOR the puiTDOse of authorizing and empowering Mayor
and City Council of Baltimore (the ''City") to issue,
sell and deliver, at any time or from time to time and
in one or more series, as limited obligations of the City
and not upon its full faith and credit, its Industrial
Development Revenue Bonds, to be designated ''Balti-
more City, Maryland Industrial Development Revenue
Bonds (Area 20 Parking Project)", in the aggregate
principal amount not to exceed S8,500,000, pursuant to
the provisions of Sub-section (50) of Article II of the
Charter of Baltimore City (1964 Revision), as amended,
for the sole and exclusive puiiDOse of financing the costs,
charges, fees and expenses in connection with the ac-
quisition of one or more parking facilities containing
approximately 750 parking spaces which shall be located
within the block ("Area 20") bounded by Lee, Light,
Barre and Charles Streets in Baltimore City, Maryland;
making certain legislative findings ; authorizing the loan
of the proceeds of the bonds to David H. Murdock De-
velopment Company or one or more joint ventures,
partnerships, corporations, or other entities involving
parties yet to be identified (the "Borrower") ; author-
izing and empowering the Board of Finance of the City,
prior to the issuance, sale and delivery of such bonds,
to adopt a resolution pursuant to which the Board of
ORDINANCES 1209
Finance shall (a) prescribe, among other things but not
limited to, the form, terms, provisions, manner or method
of issuing and selling, and the time or times of issuance,
and any and all other details of such bonds, and (b) do
any and all things necessary, proper or expedient in
connection with the issuance and sale of such bonds;
authorizing the private (negotiated) sale of such bonds;
providing that the Borrower shall agree to submit certain
plans and specifications to, and to coordinate with, the
Department of Housing and Community Development
in connection with the acquisition of the project; and
generally providing for and determining various matters
and details in connection with the authorization, issuance,
security, sale and payment of such bonds.
RECITALS
Sub-Section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended (the "Enabling
Law"), empowers Mayor and City Council of Baltimore
(the "City") to issue revenue bonds and to use the pro-
ceeds of the sale of such revenue bonds to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City. Some of the general
objectives of the City, contemplated by the Enabling
Law include relieving conditions of unemployment in
Baltimore City, encouraging the increase of industry
and a balanced economy in Baltimore City, and promoting
economic development in Baltimore City.
The City has received a letter of intent dated Octo-
ber 8, 198i (the "Letter of Intent") on behalf of David
H. Murdock Development Company or one or more joint
ventures, partnerships, corporations or other entities in-
volving parties yet to be identified, pursuant to which
the Borrower has requested the City to participate in
the financing of the costs, charges, fees and expenses
in connection with the acquisition of parking facilities
containing approximately 750 parking spaces to be lo-
cated within Area 20 (the "Project"), by issuing and
selling industrial development revenue bonds of the
City in the aggregate principal amount not to exceed
$8,500,000 and by loaning the proceeds of the revenue
bonds to the Borrower, upon the terms and conditions of a
1210 ORDINANCES Ord. No. 451
Loan Agreement to be entered into between the City
and the Borrower (the ''Loan Agreement") such loan
being herein referred to as (the ''Loan") .
The City has received the Letter of Intent from David
H. Murdock Development Company and has, detennined
to accept the Letter of Intent. The City has determined
to issue its Industrial Development Revenue Bonds (Area
20 Parking Project) in the principal amount not to
exceed $8,500,000 (the "Bonds") in order to finance
the acquisition of the Project by the Borrower as pro-
posed in the Letter of Intent.
The Loan Agreement will require the Borrower (a)
to use the proceeds of the Bonds solely to finance the
acquisition of the Project, and (b) to make loan pay-
ments which will be sufficient to enable the City to pay
the principal of and interest in premium, if any, on the
Bonds when and as the same shall become due and
payable.
As security for the Bonds, the City will enter into
either (a) a Trust Agreement (the "Trust Agreement")
with a corporate Trustee (the "Trustee") to be appointed
by the Board of Finance of the City (the "Board") or
(b) an Assignment and Security Agreement (the "As-
signment") with the original purchaser of the Bonds
(the "Original Purchaser"), and if appropriate a trus-
tee (which may be the Original Purchaser) (the "Proj-
ect Fund Trustee"). Pursuant to the Trust Agreement
or the Assignment, the City will assign to the Trustee
or, if the Assignment is entered into, the Original Pur-
chaser, its successors and assigns, (among other things)
(a) all of the City's right, title and interest in and to
and remedies under the Loan Agreement, including
(without limitation) all security referred to therein,
excepting only the rights of the City to indemnification
by the Borrower and to payments to the City for ex-
penses incurred by the City itself, (b) the receipts and
revenues of the City from the Loan, (c) certain moneys
which are at any time or from time to time on deposit
with the Trustee or the Project Fund Trustee, (d) all
right, title and interest in and to and remedies with
respect to any and all other property of every descrip-
ORDINANCES 1211
tion and nature from time to time by delivery or by
writing" of any kind conveyed, pledged, assigned or
transferred, as and for additional security for the
Bonds, by the City or by anyone on its behalf or with
its written consent, to the Trustee, or, if the Assign-
ment is entered into, the Original Purchaser, its suc-
cessors or assigns, and (e) all of the City's right, title
and interest in and to and remedies under such other
documents, including (without limitation) mortgages,
deeds of trust, guaranties and security instruments, as
the Board shall deem necessary to effectuate the issu-
ance, sale and delivery of the Bonds and which the
Board shall approve by a resolution or resolutions (the
''Resolution") to be adopted by the Board prior to the
issuance, sale and delivery of any of the Bonds.
The Bonds will be sold at a private (negotiated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to lend the pro-
ceeds thereof to the Borrower for the sole and exclusive
purpose of financing the costs of the Project will facilitate
and expedite the acquisition and installation of the Project
by the Borrower.
(2) The acquisition and installation of the Project by
the Borrower and the financing thereof as provided in this
Ordinance will serve to promote the general purposes
contemplated by the Enabling Law by (a) sustaining
jobs and employment in Baltimore City; (b) encouraging
the increase of industry and a balanced economy in Balti-
more City, and (c) promoting economic development in
Baltimore City and vnW further the purposes, objects and
powers of the City.
(3) Neither the Bonds nor the interest thereon shall
ever constitute a pledge of, or involve the faith and credit
or the taxing power of, the City, and neither shall con-
1212 ORDINANCES Ord. No. 451
stitute a debt of the City within the meaning of Section 7
of Article XI of the Constitution of Maryland or any
other constitutional, statutory or charter provision limiting
or restricting the sale or issuance of bonds, notes or other
obligations of the City, and neither shall ever constitute
or give rise to any pecuniary liability of the City. The
Bonds and the interest thereon shall be limited obligations
of the City, repayable by the City solely from the revenue
derived from Loan repayments (both principal and in-
terest) made to the City by the Borrower on account of
the Loan, and from any other moneys made available to
the City for such purposes. The proceeds of the Bonds will
be paid directly to the Trustee to be held and disbursed
by the Trustee as provided in the Trust Agreement or
if deemed appropriate by the Board, by the Project Fund
Trustee as provided in the Assignment or, if deemed
appropriate by the Board, directly to or for the benefit
of the Borrower, to be approved by the Board in the
Resolution. Payments of the principal of and premium
I (if any) and interest on the Loan will be paid by the
^Borrower directly to the Trustee as provided in the Trust
Agreement or to the Original Purchaser, its successors
and assigns, as provided in the Assignment, to be approved
by the Board in the Resolution. No such moneys will be
commingled with the City's funds or \vi\\ be subject to
the absolute control of the City, but will be subject only
to such limited supervision and checks as are deemed
necessary or desirable by the City to insure that the pro-
ceeds of the Bonds are used to accomplish the public
puiTDOses of the Enabling Law and this Ordinance. The
loan form of the transaction authorized hereunder shall
in no event constitute a capital project within the mean-
ing of any charter or statutorj^ pro\^sion. The public pur-
poses expressed in the Enabling Law are to be achieved
by facilitating the acquisition and installation of the
Project by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's
property shared by all holders of the Borrower's obliga-
tions which rank and are secured equally with the Bor-
rower's obligations pursuant to the Loan Agreement, (b)
any lien and security interest created by the Loan Agree-
ment, and (c) any interest created by any other mortgage
ORDINANCES 1213
or deed of trust or other security instrument executed
and delivered by the Borrower or any third party as
security for the Loan or the revenue bonds as the Board may
provide for and approve in the Resolution. The security
for the revenue bonds shall be solely and exclusively (a)
the absolute, irrevocable and unconditional obligations of
the Borrower to make the payments required by the Loan
Agreement, (b) moneys realized from the liquidation of
any lien and security interest created by the Loan Agree-
ment and of any other lien or security interest created
with respect to any property as security for the Loan or
the revenue bonds as the Board may provide for and
approve in the Resolution, and (c) moneys realized from
any guaranty of the revenue bonds or of the Loan as the
Board may provide for and approve in the Resolution.
(5) The best interests of the City will be served by
selling the revenue bonds at private (negotiated) sale, as
authorized by the Enabling Law, upon terms and condi-
tions approved by the Board in the Resolution.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue, sell and de-
liver, at any time or from time to time and in one or more
series, and as limited obligations of the City and not upon
its full faith and credit, its Baltimore City, Maryland In-
dustrial Development Revenue Bonds (Area 20 Parking
Project), in the aggregate principal amount not to exceed
$8,500,000, subject to the provisions of this Ordinance. The
proceeds of the Bonds will be loaned to the Borrower pur-
suant to the terms and provisions of the Loan Agreement,
to be used by the Borrower for the sole and exclusive pur-
pose of financing the costs of the acquisition and installa-
tion of the Project. The Bonds and the interest thereon
shall be limited obligations of the City, repayable by the
City solely from the revenue derived from Loan repay-
ments (both principal and interest) made to the City by
the Borrower pursuant to the Loan Agreement and from
any other moneys made available to the City for such
purpose. The security for the Bonds shall be solely and
exclusively as provided in Section 1 of this Ordinance.
Sec. 3. And he it further ordained, That each of the
Bonds shall bear the descriptive title ''Baltimore City,
1214 ORDINANCES Ord. No. 451
Maryland Industrial Development Revenue Bond (Area
20 Parking Project)", provided that the descriptive title
may contain such other descriptive infoiTnation as the
Board may prescribe in the Resolution (e.g. "1982
Series", ''1983 Series", ''1984 Series", "1985 Series," etc.).
The Bonds shall bear interest at the rate or rates of in-
terest to be determined by negotiation with the original
purchaser or purchasers of the Bonds and to be approved
and prescribed by the Board in the Resolution.
Sec. 4. And he it further ordained, That the definitive
Bonds, which may be engraved, printed or typewritten,
including the Trustee's Certificate of Authentication to be
endorsed thereon, if the Trust Agreement is entered into,
shall be in such form, not inconsistent with the Enabling
Law and the provisions of this Ordinance, as the Board
may approve in the Resolution.
Sec. 5. And be it further ordained, That the Bonds shall
be executed in the name of the City and on its behalf by
the Mayor of the City, by his manual or facsimile signa-
ture, and by the Director of Finance of the City, by his
manual or facsimile signature, and the corporate seal of
the City or a facsimile thereof shall be impressed or other-
wise reproduced thereon and attested by the Custodian of
the City Seal, by his manual signature. The Loan Agree-
ment, the Trust Agreement or the Assignment and, where
applicable, all other documents as the Board shall deem
necessary to effectuate the issuance, sale and delivery of
the Bonds, shall be executed in the name of the City and
on its behalf by the Mayor of the City by his manual or
facsimile signature, and the corporate seal of the City or
a facsimile thereof shall be impressed or otherwise re-
produced thereon and attested by the Custodian of the
City Seal by his manual signature. In case any officer whose
signature or a facsimile of whose signature shall appear
on the Bonds or any of the aforesaid documents shall cease
to be such officer before the delivery of the Bonds or any
of the other aforesaid documents, such signature or such
facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if such officer had remained in
office until delivery. The Mayor of the City, the Director
ORDINANCES 1215
of Finance of the City, the Custodian of the City Seal and
other officials of the City are hereby authorized and em-
powered to do all such acts and things and execute such
documents and certificates as the Board may determine
in the Resolution to be necessary to carry out and comply
with the provisions hereof.
Sec. 6. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time or from
time to time and in one or more series and in such amount
or amounts not exceeding, in the aggregate, the principal
amount of $8,500,000 as the Board shall prescribe in the
Resolution.
Sec. 7. And be it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of such
form and tenor, and shall be payable in such amounts, at
such times and at such place or places as the Board shall
prescribe in the Resolution.
Sec. 8. And be it further ordained. That the Bonds may
be subject to redemption prior to their stated maturities
upon such terms and conditions as the Board shall pre-
scribe in the Resolution.
Sec. 9. And be it further ordained, That prior to the
issuance, sale and delivery of the Bonds, the Board shall
adopt the Resolution pursuant to which the Board shall :
(a) prescribe the form, tenor, terms and conditions
of and security for the Bonds;
(b) prescribe the actual amounts, rate or rates of in-
terest (or the method of determining the same), denom-
inations, date, actual maturity or maturities, and the place
or places of payment of the Bonds, and the terms and con-
ditions and details under which the Bonds may be called
for redemption prior to their stated maturities;
(c) if a Trust Agreement is entered into, appoint a
bank having trust powers, or a trust company, as Trustee
for the Bonds and appoint a paying agent or agents for
the Bonds, which may be the Trustee ;
1216 ORDINANCES Ord. No. 451
(d) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
and (iii) such other documents, including (without limita-
tion) mortgages, deeds of trust, guaranties and security
instruments as the Board shall deem necessary to approve
in order to effectuate the issuance, sale and delivery of
the Bonds;
(e) determine the time of execution, issuance, sale
and delivery of the Bonds and prescribe any and all other
details of the Bonds ;
(f) provide for the direct payment by the Borrower of
all costs, fees and expenses incurred by or on behalf of
the City in connection with the issuance, sale and delivery
of the Bonds, including (without limitation) costs of print-
ing (if any) and issuing the Bonds, legal expenses and
compensation to any person (other than full time employees
of the City) performing services by or on behalf of the
City in connection therewith;
(g) if the Trust Agreement is entered into, provide for
the issuance and sale (subject to the passage of an appro-
priate ordinance authorizing the same as may be required
at the time) of one or more series of additional bonds and
one or more series of refunding bonds ; and
(h) do any and all things, and authorize the officials
of the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 10. And be it further ordained. That the Loan Agree-
ment and the Trust Agreement or the Assignment shall
contain such terms, provisions and conditions, not incon-
sistent with the Enabling Law and the provisions of this
Ordinance, as the Board shall approve in the Resolution.
Sec. 11. And be it further ordained, That, as authorized
by the Enabling Law, the Bonds shall be sold at private
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 12. And be it further ordained, That neither the
Bonds nor the interest thereon shall ever constitute a
ORDINANCEIS 1217
pledge of or involve the faith and credit or the taxing
power of the City, and neither shall ever constitute a debt
of the City within the meaning of Section 7 of Article XI
of the Constitution of Maryland or any other constitutional,
statutory or charter provision limiting or restricting the
sale or issuance of the bonds, notes or other obligations
of the City, and neither shall ever constitute or give rise
to any pecuniary liability of the City. The Bonds, and the
interest thereon, shall be limited obligations of the City,
the principal of and interest on which Bonds shall be pay-
able by the City solely from the revenue derived from Loan
repayments (both principal and interest) made to the City
by the Borrower on account of the Loan and, to the extent
provided by the Board in the Resolution, from the pro-
ceeds of the Bonds, and from any other moneys made avail-
able to the City for such purpose. The proceeds of the
Bonds will be paid directly to the Trustee or the Project
Fund Trustee to be held and disbursed by the Trustee as
provided in the Trust Agreement or if deemed appropriate
by the Board, by the Project Fund Trustee as provided in
the Assignment or if deemed appropriate by the Board,
such proceeds will be paid to or for the benefit of the Bor-
row^er, to be approved by the Board in the Resolution. No
such moneys will be commingled with the City's funds or
will be subject to the absolute control of the City, but will
be subject only to such limited supervision and checks as
are deemed necessary or desirable by the City to insure
that the proceeds of the Bonds are used to accomplish the
public purposes of the Enabling Law and this Ordinance.
Sec. 13. And be it further ordained, That in considera-
tion of the purchase and acceptance of the Bonds by those
who shall hold the Bonds from time to time, the City does
hereby, and by the execution and delivery of the Trust
Agreement or the Assignment to be approved by the Board
shall, set aside and pledge the income and revenue under
the Loan Agreement (other than payments to the City for
indemnification or to reimburse the City for expenses in-
curred by the City itself) to the Trustee or, if the Assign-
ment is entered into, the Original Purchaser, its successors
and assigns, to be used and applied for the payment of the
principal of and interest on the Bonds. Pursuant to the
terms of the Loan Agreement, to be approved by the Board
1218 ORDINANCES Ord. No. 451
in the Resolution, payments sufficient for the prompt pay-
ment when due of the principal of, premium, if any, and
interest on the Bonds are to be paid by the Borrower to
the Trustee for the benefit of the holders of the Bonds or,
if the Assignment is entered into, to the Original Pur-
chaser, its successors and assigns, for the account of the
City.
Sec. 14. And be it further ordained, That the Borrower
shall agree that:
(a) It will submit any plans and specifications for the
acquisition and installation of the Project to the Depart-
ment of Housing and Community Development for ap-
proval, and that the Department of Housing and Commu-
nity Development may refuse approval of any plans and
specifications for aesthetic or functional reasons ; and
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building and landscape design.
Sec. 15. And he it further ordained, That the Mayor of
the City is hereby authorized to accept the Letter of Intent
on behalf of the City in order to further evidence the com-
mitment of the City to issue the Bonds for the benefit of
the Borrower.
Sec. 16. And he it further ordained, That the provisions
of this Ordinance are severable, and if any provision,
sentence, clause, section or part hereof is held illegal, in-
valid or unconstitutional or inapplicable to any person or
circumstances, such illegality, invalidity or unconstitution-
ality, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the
legislative intent that this Ordinance would have been
passed if such illegal, invalid or unconstitutional provision,
sentence, clause, section or part had not been included
herein, and if the person or circumstances to which this
Ordinance or any part hereof are inapplicable had been
specifically exempted herefrom.
ORDINANOES 1219
Sec. 17. And he it further ordained, That, if the Bonds
are not issued and sold within five years from the date on
which this Ordinance is approved by the Mayor of the
City, the authorization provided by this Ordinance for
the City to issue and sell the Bonds shall expire; provided,
however, that the Board of Finance may, after a showing
of good cause at a public hearing held before the Board
of Finance, extend such authorization for one additional
term not to exceed five years. The Board of Finance, in its
sole discretion, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested exten-
sion of this Ordinance. If an extension is granted, notice
of such extension and the reasons therefor must be sent
to the City Council.
Sec. 18. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 452
(Council No. 825)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS—
(MAGNETICS INC. PROJECT)
FOR the purpose of (a) authorizing and empowering
Mayor and City Council of Baltimore to issue and sell,
at any time or from time to time and in one or more
series, as limited obligations of the City and not upon
its full faith and credit, its industrial development reve-
nue bonds in an aggregate principal amount not exceed-
ing $750,000.00 pursuant to the provisions of Article II,
subsection (50) of the Charter of Baltimore City (1964
Revision), as amended, for the sole and exclusive pur-
pose of financing the costs of the completion by Mag-
netics Inc. of a certain project consisting of the acqui-
1220 ORDINANCES Ord. No. 452
sition of the real property located at Holabird Industrial
Park in the City of Baltimore, Maryland (including the
existing improvements thereon), the renovation of cer-
tain improvements thereon, and the purchase and in-
stallation of certain machinery and equipment therein,
to be owned by the Borrov^er and leased to one or more
tenants for use as office and commercial facilities; (b)
authorizing the Mayor of the City, on the City's behalf,
to accept the letter of intent dated October 9, 1981, from
the Borrower to the City; (c) making certain legislative
findings; (d) authorizing and empowering the City's
Board of Finance by one or more resolutions adopted
before the issuance, sale and delivery of any series of
such bonds, to (i) prescribe, among other things but
not limited to, the form, terms, provisions, manner or
method of issuing and selling such bonds (including one
or more negotiated or competitive bid sales), the time
or times of their issuance, and any and all other details
of such bonds, and (ii) do any and all things necessary,
proper or expedient in connection with the issuance and
sale of such bonds; (e) authorizing the Board to adopt
one or more supplemental resolutions for certain pur-
poses; (f) authorizing the issuance of notes in anticipa-
tion of the issuance of such bonds; (g) providing that
the Borrower shall agree to submit any plans and specifi-
cations to, and to cooperate with, the City's Department
of Housing and Community Development in connection
with the completion of such project; (h) providing that
such bonds or bond anticipation notes must be issued and
sold within six (6) months from the date on which this
Ordinance is approved by the Mayor, unless the Board
approves one six-month extension as provided in this
Ordinance; and (i) generally providing for and deter-
mining various matters and details in connection with
the issuance and sale of such bonds and bond anticipa-
tion notes.
RECITALS
Article II, subsection (50) of the Charter of Balti-
more City (1964 Revision), as amended (hereinafter
referred to as the "Enabling Law"), empowers Mayor
and City Council of Baltimore (herein referred to as the
"City") to borrow money to finance undertakings for
ORDINANCES 1221
the accomplishment of any of the City's purposes, ob-
jects and powers and in connection therewith to issue
bonds, notes or other obligations (including refunding
bonds, notes or other obligations), all of which shall be
fully negotiable and payable, as to both principal and
interest, solely from and secured solely by a pledge of
any one or more of (a) the revenues from or arising
in connection with the property, facilities, developments
and improvements whose financing is undertaken by the
issuance of such bonds, notes or other obligations, (b)
the revenues from or arising in connection with any
contracts, mortgages or other securities, purchased or
otherwise acquired with the proceeds of such bonds,
notes or other obligations, or (c) the contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations. The purposes, objects and powers of the City
contemplated by the Enabling Law include the relief of
conditions of unemployment in the City of Baltimore,
Maryland, encouraging the increase of industry and a
balanced economy therein, promoting economic develop-
m^ent therein, and promoting the health, welfare and
safety of the residents thereof.
The City has received a letter of intent dated October
9, 1981 (hereinafter referred to as the ''Letter of In-
tent") from Magnetics Inc., a corporation organized and
existing under the law of Maryland (herein referred
to as the ''Borrower"), pursuant to which the Borrower
has requested the City to participate in financing the
costs of the Borrower's completion of a certain project
in the City of Baltimore, Maryland (herein referred to
as the "Project"), by issuing and selling the City's in-
dustrial development revenue bonds in an aggregate
principal sum not exceeding 8750,000.00 (hereinafter
referred to as the "Bonds"), and by making the pro-
ceeds of the Bonds available to the Borrower to be used
by it for the sole and exclusive purpose of financing the
costs of its completion of the Project.
The Project will consist generally of (a) the acquisi-
tion of a tract of land located at Holabird Industrial
Park, Baltimore, Maryland, and the existing improve-
ments thereon (consisting of, among other things, a one-
1222 ORDINANCES Ord. No. 452
story building containing approximately 40,000 square
feet of floor area), (b) the renovation of such existing
improvements for offices and commercial space, (c) the
acquisition, construction and installation in such im-
provements of such machinery and equipment, and such
other improvements, as may be necessary or useful in
connection with the operation thereof, and (d) the acqui-
sition of such other interests in land (including, by way
of example rather than of limitation, roads, rights of
access, utilities and other necessary site preparation
facilities) as may be necessary or suitable for the fore-
going purposes. Upon its completion, the Project will be
owned and used by the Borrower in its business of
manufacturing, distributing and marketing paper and
office supplies.
The Enabling Law provides that the City may author-
ize and empower the City's Board of Finance (herein
referred to as the ''Board") by resolution to determine
and set forth the form, terms, provisions, manner or
method of issuing and selling the Bonds (including one
or more negotiated or competitive bid sales), the time
or times of their issuance, and any and all other details
of the Bonds and the issuance and sale thereof, and to
do any and all things necessary, proper or expedient in
connection with the issuance and sale of the Bonds.
NOW, THEREFORE, IN ACCORDANCE WITH THE
PROVISIONS OF THE ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the provisions of
the Enabling Law, it is hereby found and determined that
1.1. The City's issuance and sale of the Bonds pursuant
to the provisions of the Enabling Law in order to make
the proceeds thereof available to the Borrower for the
sole and exclusive purpose of financing the costs of com-
pletion of the Project will facilitate and expedite such
completion.
1.2. The Borrower's completion of the Project and
the financing of the costs thereof as provided in this Ordi-
nance will serve to promote the general purposes con-
templated by the Enabling Law by (a) sustaining and
ORDINANCES 1223
increasing jobs and employment in the City of Baltimore,
(b) promoting economic development therein, and (c)
encouraging the increase of industry and a balanced
economy therein.
1.3. The Bonds shall not be general obligations of the
City, shall not be a pledge of or involve the City's faith
and credit or taxing power, and shall not constitute a
debt of the City, all within the meaning of the provisions
of Article XI, Section 7 of the Constitution of Maryland
or any other constitutional, statutory or charter provision
limiting or restricting the sale or issuance of the City's
bonds, notes or other obligations. The Bonds shall be
limited obligations of the City, shall be fully negotiable,
and shall be payable, as to both principal and interest,
solely from and secured solely by a pledge of any one or
more of (a) the revenues from or arising in connection
with the Project, (b) the revenues from or arising in
connection with any contracts, mortgages or other securi-
ties purchased or otherwise acquired with the proceeds
of the Bonds, (c) the contracts, mortgages or other securi-
ties purchased or otherwise acquired with the proceeds
of the Bonds, and all as the Board may approve by one
or more resolutions adopted before the issuance, sale and
delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue bonds
in an aggregate principal sum not exceeding $750,000.00,
subject to the provisions of this Ordinance. The proceeds
of the Bonds shall be made available to the Borrower under
terms and conditions approved by the Board and set forth
in a resolution, and shall be used by the Borrower for
the sole purpose of financing the costs of the completion
of the Project. ANY PROCEEDS OF THE BONDS, AND
ANY SUMS EARNED BY INVESTMENT OF SUCH
PROCEEDS BEFORE DISBURSEMENT, WHICH PRO-
CEEDS AND OTHER SUMS REMAIN UNDISBURSED
AFTER MAKING FULL PAYMENT (OR PROVISION
THEREFOR) OF THE COSTS OF THE COMPLETION
1224 ORDINANCES Ord. No. 452
OF THE PROJECT, SHALL BE APPLIED TO THE
REDEMPTION OF THE BONDS AT THE EARLIEST
PRACTICABLE REDEMPTION DATE.
Sec. 3. And be it fu7'ther ordained, That this Ordinance
constitutes the present intent of the City to issue the
Bonds, and the Mayor of the City (herein referred to as
the ''Mayor") is hereby authorized to accept the Letter
of Intent on the City's behalf to further evidence the
City's present intent to issue the Bonds in accordance
with the provisions of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the EnabHng Law, the Board is hereby authorized and
empowered, by one or more resolutions adopted before
the issuance, sale and delivery of any of the Bonds, to
4.1. prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling the Bonds (including one or more negotiated
or competitive bid sales) , the time or times of their issu-
ance, and any and all other details of the Bonds and their
issuance and sale ;
4.2. approve (a) the City's pledge or assignment of
any of the security described in by the provisions of Sec-
tion 6 hereof, pursuant to a trust agreement or similar
agreement, (b) the form of any such trust agreement or
similar agreement, as provided in the Enabling Law, and
(c) such provisions in any such trust agreement or similar
agreement as the Board may deem reasonable and proper
for the security of the holders of the Bonds ;
4.3. approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by the City (other than
customary financing statements and closing certificates),
under which the proceeds of the Bonds will be made avail-
able to the Borrower to finance the costs of the completion
of the Project; and
4.4. do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
ORDINANCES 1225
Sec. 5. And be it further ordained, That the Board
is hereby authorized and empowered to adopt one or more
resolutions from time to time, either before or after the
issuance, sale and delivery of the Bonds, to supplement
the resolution or resolutions referred to in the provisions
of Sections 4 and 8 hereof, and thereby to approve amend-
ments or supplements to or substitutes for the forms and
provisions of the Bonds, such trust agreement or similar
agreement and all other documents approved by such
resolution or resolutions, provided that each such supple-
mental resolution and each such amendment, supplement
or substitute shall be in accordance with the provisions of
the Enabling Law and this Ordinance.
Sec. 6. A7id be it further ordained, That the Bonds shall
not be general obligations of the City, shall not be a pledge
of or involve the City's faith and credit or taxing power,
and shall not constitute a debt of the City, all A\athin the
meaning of the provisions of Article XI, Section 7 of the
Constitution of Mar>^land or any other constitutional, stat-
utory or charter provision limiting or restricting the sale
or issuance of the City's bonds, notes or other obligations.
The Bonds shall be limited obligations of the City, shall
be fully negotiable, and shall be payable, as to both prin-
cipal and interest, solely from and secured solely by a pledge
of any one or more of (a) the revenues from or arising
in connection with the Project, (b) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or other^^ise acquired with the
proceeds of the Bonds, or (c) the contracts, mortgages or
other securities purchased or otherAvise acquired with the
proceeds of the Bonds, all as the Board may approve by
one or more resolutions adopted before the issuance, sale
and delivery of any of the Bonds.
Sec. 7. And be it further ordained. That the Bonds shall
be executed in the City's name and on its behalf by the
Mayor, by his manual or facsimile signature, and by the
City's Director of Finance, by his manual or facsimile sig-
nature, and the City's corporate seal or a facsimile thereof
shall be impressed or otherwise reproduced thereon and
attested by the Custodian of the City Seal, by his manual
signature. The trust agreement or similar agi'eement and
1226 ORDINANCES Ord. No. 452
all other documents approved by the resolution or resolu-
tions referred to in the provisions of Sections 4 and 8
hereof, and any and all amendments thereto approved by
a resolution referred to in the provisions of Section 5 here-
of, shall be executed in the City's name and on its behalf by
the Mayor by his manual signature, and the City's corporate
seal or a facsimile thereof shall be impressed or othenvise
reproduced thereon and attested by the Custodian of the City
Seal, by his manual signature. In case any officer whose
signature or a facsimile thereof shall appear on the Bonds
or any of the said documents shall cease to be such officer
before the delivery of the Bonds or any other such docu-
ment, such signature or such facsimile shall nevertheless
be valid and sufficient for all purposes, as if such officer
had remained in office until delivery. The Mayor, the City's
Director of Finance, the Custodian of the City Seal and
other officials of the City are hereby authorized and em-
powered to do all such acts and things and execute such
documents and certificates as the Board may deteiTnine
in the resolutions referred to in the provisions of Sections
4, 5 and 8 hereof to be necessary to carry out and comply
with the provisions hereof.
Sec. 8. And he it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to in-
clude the authority to issue bond anticipation notes pur-
suant to the provisions of Article 31, Section 12 of the
Annotated Code of Maryland (1976 Replacement Volume
and 198[0] Cumulative Supplement), as amended (here-
inafter referred to as the ''Note Enabling Law").
Reference in this Ordinance to the Bonds shall include
such bond anticipation notes where appropriate. As per-
mitted by the provisions of the Enabling Law and the Note
Enabling Law, the Board is hereby authorized and em-
powered, by one or more resolutions adopted before the
issuance, sale and delivery of any of such bond anticipation
notes, to
8.1. prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling any such bond anticipation notes (including one
or more negotiated or competitive bid sales), the time or
ORDINANCES 1227
times of their issuance, and any and all other details of
such bond anticipation notes and their issuance and sale;
6.2. approve (a) the City's pledge or assignment of any
of the security described in the provisions of Section 6 here-
of, pursuant to a trust agreement or similar agreement,
(b) the foiTn of any such trust agreement or similar agree-
ment, as provided in the Enabling Law or the Note Ena-
bling Law, and (c) such provisions in any such trust
agreement or similar agreement as the Board may deem
reasonable and proper for the security of the holders of
such bond anticipation notes ;
8.3. approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes will
be made available to the Borrower to finance the costs of
the completion of the Project; and
8.4. do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and delivery of
such bond anticipation notes.
In accordance with the Note Enabling Law, the City
hereby covenants (a) to pay any bond anticipation notes
issued pursuant to the provisions of this Section, and the
interest thereon, from the proceeds of the Bonds in antic-
ipation of the sale of which such notes are issued, and (b)
to issue such Bonds when, and as soon as, the reason for
deferring the issuance of the Bonds no longer exists. The
timely issuance of such Bonds, however, is dependent upon
matters not within the City's control, including (without
limitation) the existence of a purchaser or purchasers of
such Bonds when the reason for deferring the issuance of
the Bonds no longer exists, and the effectiveness of various
actions taken by the Borrower, its officers, agents and
employees.
Sec. 9. And be it further ordained, That the Borrower
shall agree that
9.1. it will submit any plans and specifications for
the Project to the City's Department of Housing and Com-
1228 ORDINANCES Ord. No. 452
munity Development for approval, and that such Depart-
ment may refuse approval of any such plans and specifi-
cations for aesthetic or functional reasons ; and
9.2. it and its developers will work v^ith the design
advisory group appointed by such Department to achieve
high quality site, building and landscape design.
Sec. 10. And be it further ordained, That the provi-
sions of this Ordinance are severable, and if any pro-
vision, sentence, clause, section or part hereof is held
illegal, invalid or unconstitutional or inapplicable to any
person or circumstance, such illegality, invalidity, uncon-
stitutionality or inapplicability shall not affect or impair
any of the remaining provisions, sentences, clauses, sec-
tions or parts of this Ordinance or their application to
other persons or circumstances. It is hereby declared to
be the legislative intent that this Ordinance would have
been passed if such illegal, invalid or unconstitutional
provision, sentence, clause, section or part had not been
included herein, and if the person or circumstances to
which this Ordinance or any part hereof is inapplicable
had been specifically exempted herefrom.
Sec. 11. And he it further ordained, That either the
Bonds or any bond anticipation notes issued pursuant to
the provisions of Section 8 hereof must be issued and sold
within six (6) months from the date on which this Ordi-
nance is approved by the Mayor ; provided, that the Board,
after a showing of good cause at a public hearing held
before the Board before or after the expiration of such
six-month period, may extend the period during which
either the Bonds or such bond anticipation notes may be
issued and sold for one additional term not exceeding six
(6) months from the date on which the first six-month
period expires. The Board, in its sole discretion and
without action by the City Council of the City, shall de-
termine the sufficiency, or lack thereof, of the reasons
presented for any requested extension of such six-month
period. If an extension is granted, notice of such extension
and the reasons therefor must be sent to the City Council
of the City. To the extent that neither the Bonds nor such
bond anticipation notes are issued and sold within twelve
ORDINANCES 1229
(12) months from the date on which this Ordinance is
approved by the Mayor, the authority provided in this
Ordinance for the City to issue and sell the Bonds and
such bond anticipation notes shall expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 453
(Council No. 826)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
(COHUTTA ASSOCIATES PROJECT)
FOR the purpose of (a) authorizing and empowering
Mayor and City Council of Baltimore to issue and
sell, at any time or from time to time and in one or
more series, as limited obligations of the City and not
upon its full faith and credit, its industrial development
revenue bonds in an aggregate principal amount not
exceeding $690,000.00 pursuant to the provisions of
Article II, Subsection (50) of the Charter of Baltimore
City (1964 Revision), as amended, for the sole and
exclusive purpose of financing the costs of the comple-
tion by Cohutta Associates of a certain project con-
sisting of the acquisition of the real property located
at Holabird Industrial Park in the City of Baltimore,
'Maryland (including the existing improvements thereon) ,
the renovation of certain improvements thereon, and
the purchase and installation of certain machinery and
equipment therein, to be owned by the Borrower and
leased to one or more tenants for use as office and com-
mercial facilities ; (b) authorizing the Mayor of the City,
on the City's behalf, to accept the letter of intent dated
October 9, 1981, from the Borrower to the City; (c) mak-
1230 ORDINANCES Ord. No. 453
ing certain legislative findings; (d) authorizing and
empowering the City's Board of Finance by one or more
resolutions adopted before the issuance, sale and delivery
of any series of such bonds, to (i) prescribe, among
other things but not limited to, the fonn, terms, pro-
visions, manner or method of issuing and selling such
bonds (including one or more negotiated or competitive
bid sales), the time or times of their issuance, and any
and all other details of such bonds, and (ii) do any
and all things necessary, proper or expedient in con-
nection with the issuance and sale of such bonds; (e)
authorizing the Board to adopt one or more supple-
mental resolutions for certain purposes; (f) authorizing
the issuance of notes in anticipation of the issuance of
such bonds; (g) providing that the Borrower shall
agree to submit any plans and specifications to, and to
cooperate with, the City's Department of Housing and
Community Development in connection with the com-
pletion of such project; (h) providing that such bonds
or bond anticipation notes must be issued and sold
^\dthin six (6) months from the date on which this
Ordinance is approved by the Mayor, unless the Board
approves one six-month extension as provided in this
Ordinance; and (i) generally providing for and deter-
mining various matters and details in connection with
the issuance and sale of such bonds and bond anticipa-
tion notes.
RECITALS
Article II, subsection (50) of the Chai-ter of Balti-
more City (1964 Revision), as amended (hereinafter
referred to as the ''Enabling Law"), empowers Mayor
and City Council of Baltimore (herein referred to as
the "City") to borrow money to finance undertakings
for the accomplishment of any of the City's purposes,
objects and powers and in connection therewith to issue
bonds, notes or other obligations (including refunding
bonds, notes or other obligations), all of which shall
be fully negotiable and payable, as to both principal
and interest, solely from and secured solely by a pledge
of any one or more of (a) the revenues from or arising
in connection with the property, facilities, developments
and improvements whose financing is undertaken by
ORDINANCES 1231
the issuance of such bonds, notes or other obligations,
(b) the revenues from or arising in connection with
any contracts, mortgages or other securities, purchased
or otherwise acquired with the proceeds of such bonds,
notes or other obligations, or (c) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of such bonds, notes or other obliga-
tions. The purposes, objects and powers of the City
contemplated by the Enabling Law include the relief
of conditions of unemployment in the City of Baltimore,
Maryland, encouraging the increase of industry and a
balanced economy therein, promoting economic develop-
ment therein, and promoting the health, welfare and
safety of the residents thereof.
The City has received a letter of intent dated Octo-
ber 9, 1981 (hereinafter referred to as the "Letter of
Intent") from Cohutta Associates, a partnership or-
ganized and existing under the law of Maryland (herein
referred to as the "Borrower'^, pursuant to which the
Borrower has requested the City to participate in financ-
ing the costs of the Borrower's completion of a certain
project in the City of Baltimore, Maryland (herein re-
ferred to as the "Project"), by issuing and selling the
City's industrial development revenue bonds in an aggre-
gate principal sum not exceeding $690,000 (hereinafter
referred to as the "Bonds"), and by making the pro-
ceeds of the Bonds available to the Borrower to be used
by it for the sole and exclusive purpose of financing
the costs of its completion of the Project.
The Project will consist generally of (a) the acquisi-
tion of a tract of land located at Holabird Industrial
Park, Baltimore, Maryland, and the existing improve-
ments thereon (consisting of, among other things, a one-
story building containing approximately 30,000 square
feet of floor area), (b) the renovation of such existing
improvements for oflSces and commercial space, (c) the
acquisition, construction and installation in such im-
provements of such machinery and equipment, and such
other improvements, as may be necessary or useful in
connection with the operation thereof, and (d) the ac-
quisition of such other interests in land (including, by
way of example rather than of limitation, roads, rights
1232 ORDINANCES Ord. No. 453
of access, utilities and other necessary site preparation
facilities) as may be necessary or suitable for the fore-
going purposes. Upon its completion, the Project will be
owned by the Borrower and leased, for use as commer-
cial facilities, to R. J. Carpet Distributors, Inc., the
principals of which are also principals of the Borrower.
The Enabling Law provides that the City may au-
thorize and empower the City's Board of Finance (herein
referred to as the "Board") by resolution to determine
and set forth the form, terms, provisions, manner or
method of issuing and selling the Bonds (including one
or more negotiated or competitive bid sales), the time
or times of their issuance, and any and all other details
of the Bonds and the issuance and sale thereof, and
to do any and all things necessary, proper or expedient
in connection with the issuance and sale of the Bonds.
NOW, THEREFORE, IN ACCORDANCE WITH THE
PROVISIONS OF THE ENABLING LAW,
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the provisions of
the Enabling Law, it is hereby found and determined that
1.1. The City's issuance and sale of the Bonds pursuant
to the provisions of the Enabling Law in order to make
the proceeds thereof available to the Borrower for the
sole and exclusive purpose of financing the costs of com-
pletion of the Project will facilitate and expedite such
completion.
1.2. The Borrower's completion of the Project and the
financing of the costs thereof as provided in this Ordi-
nance will serve to promote the general purposes con-
templated by the Enabling Law by (a) sustaining and
increasing jobs and employment in the City of Baltimore,
(b) promoting economic development therein, and (c)
encouraging the increase of industry and a balanced econ-
omy therein.
1.3. The Bonds shall not be general obligations of the
City, shall not be a pledge of or involve the City's faith
and credit or taxing power, and shall not constitute a debt
of the City, all within the meaning of the provisions of
ORDINANCES 1233
Article XI, Section 7 of the Constitution of Maryland or
any other constitutional, statutory or charter provision
limiting or restricting the sale or issuance of the City's
bonds, notes or other obligations. The Bonds shall be
limited obligations of the City, shall be fully negotiable,
and shall be payable, as to both principal and interest,
solely from and secured solely by a pledge of any one or
more of (a) the revenues from or arising in connection
with the Project, (b) the revenues from or arising in con-
nection v^ith any contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of the
Bonds, and (c) the contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of the
Bonds, all as the Board may approve by one or more
resolutions adopted before the issuance, sale and delivery
of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue bonds
in an aggregate principal sum not exceeding $690,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds shall be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a resolution, and shall be used by the Borrower
for the sole purpose of financing the costs of the comple-
tion of the Project. ANY PROCEEDS OF THE BONDS,
AND ANY SUMS EARNED BY INVESTMENT OF
SUCH PROCEEDS BEFORE DISBURSEMENT, WHICH
PROCEEDS AND OTHER SUMS REMAIN UNDIS-
BURSED AFTER MAKING FULL PAYMENT (OR PRO-
VISION THEREFOR) OF THE COSTS OF THE COM-
PLETION OF THE PROJECT, SHALL BE APPLIED
TO THE REDEMPTION OF THE BONDS AT THE
EARLIEST PRACTICABLE REDEMPTION DATE.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the
Bonds, and the Mayor of the City (herein referred to as
the ''Mayor") is hereby authorized to accept the Letter of
Intent on the City's behalf to further evidence the City's
12.'M ORDINANCES Ord. No. 453
present intent to issue the Bonds in accordance with the
provisions of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by one or more resolutions adopted before the
issuance, sale and delivery of any of the Bonds, to
4.1. prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling the Bonds (including one or more negotiated
or competitive bid sales), the time or times of their issu-
ance, and any and all other details of the Bonds and their
issuance and sale;
4.2. approve (a) the City's pledge or assignment of
any of the security described in by the provisions of Section
6 hereof, pursuant to a trust agreement or similar agree-
ment, (b) the form of any such trust agreement or similar
agreement, as provided in the Enabling Law, and (c)
such provisions in any such trust agreement or similar
agreement as the Board may deem reasonable and proper
for the security of the holders of the Bonds;
4.3. approve the teims and conditions, including but
not limited to the terms and conditions of any documents to
be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of the Bonds will be made available
to the Borrower to finance the costs of the completion of
the Project; and
4.4. do any and all things necessary, proper or expedient
in connection with the issuance, sale and delivery of the
Bonds.
Sec. 5. A7id be it further ordained, That the Board is
hereby authorized and empowered to adopt one or more
resolutions from time to time, either before or after the
issuance, sale and delivery of the Bonds, to supplement
the resolution or resolutions referred to in the pro\isions
of Sections 4 and 8 hereof, and thereby to approve amend-
ments or supplements to or substitutes for the forms and
provisions of the Bonds, such trust agreement or similar
agreement and all other documents approved by such
ORDINANCES 1235
resolution or resolutions, provided that each such supple-
mental resolution and each such amendment, supplement
or substitute shall be in accordance with the provisions
of the Enabling Lav^ and this Ordinance.
Sec. 6. And he it further ordained, That the Bonds shall
not be general obligations of the City, shall not be a pledge
of or involve the City's faith and credit or taxing power,
and shall not constitute a debt of the City, all within the
meaning of the provisions of Article XI, Section 7 of the
Constitution of Maryland or any other constitutional, stat-
utory or charter provision limiting or restricting the sale
or issuance of the City's bonds, notes or other obligations.
The Bonds shall be limited obligations of the City, shall be
fully negotiable, and shall be payable, as to both principal
and interest, solely from and secured solely by a pledge of
any one or more of (a) the revenues from or arising in con-
nection with the Project, (b) the revenues from or arising
in connection with any contracts, mortgages or other secur-
ities purchased or otherwise acquired with the proceeds of
the Bonds, or (c) the contracts, mortgages or other secur-
ities purchased or otherwise acquired with the proceeds of
the Bonds, all as the Board may approve by one or more
resolutions adopted before the issuance, sale and delivery of
any of the Bonds.
Sec. 7. And he it further ordained, That the Bonds shall
be executed in the City's name and on its behalf by the
Mayor, by his manual or facsimile signature, and by the
City's Director of Finance, by his manual or facsimile sig-
nature, and the City's corporate seal or a facsimile thereof
shall be impressed or otherwise reproduced thereon and
attested by the Custodian of the City Seal, by his manual
signature. The trust agreement or similar agreement and
all other documents approved by the resolution or resolu-
tions referred to in the provisions of Sections 4 and 8
hereof, and any and all amendments thereto approved by
a resolution referred to in the provisions of Section 5
hereof, shall be executed in the City's name and on its
behalf by the Mayor by his manual signature, and the
City's corporate seal or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian of the City Seal, by his manual signature.
1236 ORDINANCES Ord. No. 453
In case any officer whose signature or a facsimile thereof
shall appear on the Bonds or any of the said documents
shall cease to be such officer before the delivery of the
Bonds or any other such document, such signature or such
facsimile shall nevertheless be valid and sufficient for all
purposes, as if such officer had remained in office until
delivery. The Mayor, the City's Director of Finance, the
Custodian of the City Seal and other officials of the City
are hereby authorized and empowered to do all such acts
and things and execute such documents and certificates
as the Board may deteiTnine in the resolutions referred to
in the provisions of Sections 4, 5 and 8 hereof to be neces-
sary to carry out and comply with the provisions hereof.
Sec. 8. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to in-
clude the authority to issue bond anticipation notes pur-
suant to the provisions of Article 31, Section 12 of the
Annotated Code of Maryland (1976 Replacement Volume
and 198[0] Cumulative Supplement) , as amended (herein-
after referred to as the ''Note Enabling Law"). Reference
in this Ordinance to the Bonds shall include such bond
anticipation notes where appropriate. As permitted by the
provisions of the Enabling Law and the Note Enabling
Lav\^, the Board is hereby authorized and empowered, by
one or more resolutions adopted before the issuance, sale
and delivery of any of such bond anticipation notes, to
8.1. prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling any such bond anticipation notes (including one
or more negotiated or competitive bid sales), the time or
times of their issuance, and any and all other details of
such bond anticipation notes and their issuance and sale;
8.2. approve (a) the City's pledge or assignment of
any of the security described in the provisions of Section
6 hereof, pursuant to a trust agreement or similar agree-
ment, (b) the form of any such trust agreement or similar
agreement, as provided in the Enabling Law or the Note
Enabling Law, and (c) such provisions in any such trust
agreement or similar agreement as the Board may deem
reasonable and proper for the security of the holders of
such bond anticipation notes;
ORDINANCES 1237
8.3. approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), under
which the proceeds of such bond anticipation notes will be
made available to the Borrower to finance the costs of the
completion of the Project ; and
8.4. do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and delivery of
such bond anticipation notes.
In accordance with the Note Enabling Law, the City
hereby covenants (a) to pay any bond anticipation notes
issued pursuant to the provisions of this Section, and the
interest thereon, from the proceeds of the Bonds in antic-
ipation of the sale of which such notes are issued, and (b)
to issue such Bonds when, and as soon as, the reason for
deferring the issuance of the Bonds no longer exists. The
timely issuance of such Bonds, however, is dependent upon
matters not within the City's control, including (without
limitation) the existence of a purchaser or purchasers of
such Bonds when the reason for deferring the issuance of
the Bonds no longer exists, and the effectiveness of various
actions taken by the Borrower, its officers, agents and
employees.
Sec. 9. And he it further ordained, That the Borrower
shall agree that
9.1. it will submit any plans and specifications for the
Project to the City's Department of Housing and Com-
munity Development for approval, and that such Depart-
ment may refuse approval of any such plans and specifi-
cations for aesthetic or functional reasons ; and
9.2. it and its developers will work with the design
advisory group appointed by such Department to achieve
high quality site, building and landscape design.
Sec. 10. And he it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstance, such illegality, invalidity, unconstitutionality
1238 ORDINANCES Ord. No. 453
or inapplicability shall not affect or impair any of the
remaining provisions, sentences, clauses, sections or parts
of this Ordinance or their application to other persons or
circumstances. It is hereby declared to be the legislative
intent that this Ordinance would have been passed if such
illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included herein, and
if the person or circumstances to v^^hich this Ordinance
or any part hereof is inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the
Bonds or any bond anticipation notes issued pursuant to
the provisions of Section 8 hereof must be issued and sold
within six (6) months from the date on which this Ordi-
nance is approved by the Mayor ; provided, that the Board,
after a showing of good cause at a public hearing held
before the Board before or after the expiration of such
six-month period, may extend the period during which
either the Bonds or such bond anticipation notes may be
issued and sold for one additional term not exceeding six
(6) months from the date on which the first six-month
period expires. The Board, in its sole discretion and without
action by the City Council of the City, shall determine the
sufficiency, or lack thereof, of the reasons presented for
any requested extension of such six-month period. If an
extension is granted, notice of such extension and the
reasons therefor must be sent to the City Council of the
City. To the extent that neither the Bonds nor such bond
anticipation notes are issued and sold within twelve (12)
months from the date on which this Ordinance is approved
by the Mayor, the authority provided in this Ordinance
for the City to issue and sell the Bonds and such bond
anticipation notes shall expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
ORDINANCES 1239
No. 454
(Council No. 827)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS—
(MAY DEPARTMENT STORES COMPANY PROJECT)
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $10,000,000,
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision), as
amended, for the sole and exclusive purpose of financing
the cost of the completion by The May Department Stores
Company, a New York corporation, of a certain project
in Baltimore City consisting of the rehabilitation, equip-
ping, fixturing, remodeling and improving of an eight
story building for use in its business of retail sales and
for rental of certain space therein ; authorizing the Mayor
of the City, on behalf of the City, to accept the letter of
intent dated October , 1981 from The May Department
Stores Company to the City; making certain legislative
findings; authorizing and empowering the Board of Fi-
nance of the City, by a resolution or resolutions adopted
prior to the issuance, sale and delivery of any series of
such bonds, to (a) prescribe, among other things but not
limited to, the form, terms, provisions, manner or method
of issuing and selling (including negotiated as well as
competitive bid sale), and the time or times of issuance,
and any and all other details of such bonds, and (b) do
any and all things necessary, proper or expedient in con-
nection with the issuance and sale of such bonds; pro-
viding that The May Department Stores Company shall
agree to submit any plans and specifications to, and to
coordinate with, the Department of Housing and Com-
munity Development in connection with the completion
of such project; providing that such bonds (or bond an-
ticipation notes issued in anticipation of the issuance of
such bonds) must be issued and sold within two years
from the date this Ordinance is approved by the Mayor ;
1240 ORDINANCES Ord. No. 454
authorizing the issuance of notes in anticipation of the
issuance of such revenue bonds ; and generally providing
for and determining various matters and details in con-
nection with the issuance and sale of such bonds and
bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended (the ''Enabling
Law"), empowers Mayor and City Council of Baltimore
(the ''City") to borrow money to finance undertakings
for the accomplishment of any of the purposes, objects
and powers of the City and in connection therewith to
issue bonds, notes, or other obligations (including re-
funding bonds, notes or other obligations), all of which
shall be fully negotiable, payable, as to both principal and
interest, solely from and secured solely by a pledge of
payments and other amounts derived by the Cit>^ under
a Loan Agreement, except to the extent payable from
unexpended Bond proceeds and income from the invest-
ment thereof. The purposes, objects and powers of City
contemplated by the Enabling Law include the relief of
conditions of unemployment in Baltimore City, encour-
aging the increase of industry and a balanced economy in
Baltimore City, promoting economic development in Bal-
timore City, and promoting the health, welfare and
safety of the residents of Baltimore City.
City has received a letter of intent dated October 8,
1981 (the "Letter of Intent") from The May Depart-
ment Stores Company, a New York corporation (the
"Borrower"), pursuant to which Borrower has requested
City to participate in the financing of a portion of the
costs of the completion by Borrower of a certain project
in Baltimore City, Maryland (the "Project"), by issuing
and selling City's industrial development revenue bonds
in the aggregate principal amount not to exceed
$10,000,000 (the "Bonds"), and by making the proceeds
of the Bonds available to Borrower to be used by the
Borrower for the sole and exclusive purpose of financing
a portion of the costs of the completion of the Project by
Borrower.
ORDINANCES 1241
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of City as
mentioned in the Enabling Law, will consist of the re-
habilitation of an existing building, five floors of which
are expected to be used by Borrower as a retail sales
facility and three floors of which are expected to be
leased by Borrower, and acquisition and installation of
certain equipment and fixtures in connection with Bor-
rower's business of retail sales, all as more fully de-
scribed in the Letter of Intent.
The Enabling Law provides that City may authorize and
empower the Board of Finance of City (the ''Board") by
resolution to determine and set forth the form, terms,
provisions, manner or method of issuing and selling (in-
cluding negotiated as well as competitive bid sale), and
the time or times of issuance, and any and all other de-
tails of the Bonds and the issuance and sale thereof, and
to do any and all things necessary, proper or expedient
in connection with the issuance and sale of the bonds.
NOW THEREFORE IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the bonds by City pursuant
to the Enabling Law in order to make the proceeds thereof
available to Borrower for the sole and exclusive purpose of
financing a portion of the costs of completion of the Proj-
ect will facilitate and expedite the completion of the Proj-
ect by Borrower.
(2) The completion of the Project by Borrower and
the financing of the costs of such completion as provided
in this Ordinance will serve to promote the general pur-
poses contemplated by the Enabling Law by (a) sustaining
jobs and employment in Baltimore City; (b) promoting
economic developm^ent in Baltimore City; (c) encouraging
a balanced economy in Baltimore City; and (d) encourag-
ing the continued viability of retail operations in Baltimore
City.
(3) Any and all of the Bonds shall not be general obli-
gations of City and shall not be a pledge of or involve the
1242 ORDINANCES Ord. No. 454
faith and credit or the taxing power of City and shall not
constitute a debt of City, all within the meaning of Section
7 of Article XI of the Constitution of Maryland or within
the meaning of any other constitutional, statutory or char-
ter provision limiting or restricting the sale or issuance of
bonds, notes or other obligations of City. All of the Bonds
shall be limited obligations of City, and shall be fully nego-
tiable, payable, as to both principal and interest, solely
from and secured solely by a pledge of payments and other
amounts derived by the City under a Loan Agreement, ex-
cept to the extent payable from unexpended Bond proceeds
and income from the investment thereof, all as Board may
approve by a resolution or resolutions adopted prior to the
issuance, sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That City is hereby
authorized and empowered to issue and sell, at any time or
from time to time and in one or more series, as limited ob-
ligations of City and not upon its full faith and credit, its
industrial development revenue bonds, in the aggregate
principal amount not to exceed $10,000,000, subject to the
provisions of this Ordinance. The proceeds of the Bonds
will be made available to Borrower under terms and condi-
tions approved by Board and set forth in a Resolution, and
used by Borrower for the sole and exclusive purpose of fi-
nancing a portion of the costs of the completion of the
Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of City to issue the Bonds,
and the Mayor of City is hereby authorized to accept the
Letter of Intent on behalf of City in order to further evi-
dence the present intent of City to issue the Bonds in
accordance with the terms and provision of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, Board is hereby authorized and em-
powered, by a resolution or resolutions adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
ORDINANiOES 1243
other details of the Bonds and the issuance and sale there-
of;
(b) approve (i) the pledge or asignment by City of
any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar
agreement, as provided in the Enabling Law, and (iii)
such provisions in any such trust agreement or similar
agreement as Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to Bor-
rower to finance a portion of the costs of the completion
of the Project ; and
(d) do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and delivery of
the Bonds.
Sec. 5. And he it further ordained, That any and all of
the Bonds shall not be general obligations of City and shall
not be a pledge of or involve the faith and credit or the
taxing power of City, and shall not constitute a debt of
City, all within the meaning of Section 7 of Article XI of
the Constitution of Maryland or any other constitutional,
statutory or charter provision limiting or restricting the
sale or issuance of bonds, notes or other obligations of City.
All of the Bonds shall be limited obligations of City, and
shall be fully negotiable, payable, as to both principal and
interest, solely from and secured solely by a pledge of pay-
ments and other amounts derived by the City under a Loan
Agreement, except to the extent payable from unexpended
Bond proceeds and income from the investment thereof, all
as Board may approve by a resolution or resolutions
adoiDted prior to the issuance, sale and delivery of any of
the Bonds.
Sec. 6. And be it ftirther ordained, That Borrower shall
agree that :
1244 ORDINANCES Ord. No. 454
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community De-
velopment for review and approval ; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it fivrther ordained, That any and all of
the Bonds shall be executed in the name of The Mayor and
City Council of City and on its behalf by the Mayor of City,
by his manual or facsimile signature, and by the Director
of Finance of City, by his manual or facsimile signature,
and the corporate seal of City or a facsimile thereof shall
be impressed or otherwise reproduced thereon and attested
by the Custodian of the City Seal, by his manual signature.
Any trust agreement or other documents as the Board shall
deem necessary to effectuate the issuance, sale and delivery
of the Bonds shall be executed in the name of The Mayor
and City Council of City and on its behalf by the Mayor of
City by his manual or facsimile signature, and the corpo-
rate seal of City or a facsimile thereof shall be impressed
or otherwise reproduced thereon and attested by the Cus-
todian of the City Seal by his manual signature. In case
any officer whose signature or a facsimile of whose signa-
ture shall appear on the Bonds or any of the aforesaid doc-
uments shall cease to be such officer before the delivery of
the Bonds or any of the other aforesaid documents, such
signature or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of City, the
Director of Finance of City, the Custodian of the City Seal
and other officials of City are hereby authorized and em-
powered to do all such acts and things and execute such
documents and certificates as the Board may determine by
resolution to be necessary to carry out and comply with the
provisions hereof.
Sec. 8. And he it further ordained, That any and all nec-
essary financing statements required for the consummation
of the transactions authorized by this Ordinance may be
executed on behalf of City by the Mayor of City or by the
Chief, Bureau of Treasury Management of City or by such
ORDINANCES 1245
other appropriate official of City as may be designated by
the Mayor of City to execute such financing statements.
Sec. 9. And be it further ordained, That the authority to
issue the Bonds is intended and shall be deemed to include
the authority to issue bond anticipation notes pursuant to
Section 12 of Article 31 of the Annotated Code of Mary-
land (1976 Replacement Volume and 1980 Cumulative Sup-
plement), as amended (the ''Bond Anticipation Note En-
abling Legislation"). Reference in this Ordinance to the
"Bonds" shall include such bond anticipation notes where
appropriate. Prior to the issuance, sale and delivery of any
series of bond anticipation notes, Board shall adopt a res-
olution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by City of
any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as Board may deem reasonable and proper for the
security of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by City (other than customary
financing statements and closing certificates), under which
the proceeds of such bond anticipation notes will be made
available to Borrower to finance the costs of the completion
of the Project ; and
(d) do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and delivery of
such bond anticipation notes.
In accordance with the Bond Anticipation Note Enabling
Legislation, City hereby covenants to pay any bond antici-
pation notes issued pursuant to this Section of this Ordi-
1246 ORDINANICES Ord. No. 454
nance and the interest thereon from the proceeds of the
Bonds in anticipation of the sale of which such notes are
issued, and City hereby further covenants to issue such
Bonds, as the case may be, when, and as soon as, the reason
for deferring the issuance of the Bonds no longer exists.
The timely issuance of such Bonds, however, is dependent
upon matters not within the control of City, including
(without limitation) the existence of a purchaser or pur-
chasers for such Bonds at the time the reason for deferring
the issuance of the Bonds no longer exists and the effec-
tiveness of various actions taken by Borrower, its officers,
agents and employees.
Sec. 10. And he it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of the
remaining provisions, sentences, clauses, sections, or parts
of this Ordinance or their application to other persons or
circumstances. It is hereby declared to be the legislative
intent that this Ordinance would have been passed if such
illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included herein, and if
the person or circumstances to which this Ordinance or any
part hereof are inapplicable had been specifically exempted
herefrom.
Sec. 11. And be it further ordained, That either the
Bonds or bond anticipation notes issued pursuant to Sec-
tion 9 of this Ordinance in anticipation of the issuance of
the Bonds must be issued and sold within six months from
the date on which this Ordinance is approved by the Mayor
of City; provided, however, that the Board, after a show-
ing of good cause at a public hearing held before the Board
prior to or after the expiration of such six month period,
may extend the period during which either the Bonds or
such bond anticipation notes may be issued and sold for
one additional term not to exceed six months from the date
on which the first six month period expired. Board, in its
sole discretion, and without action by City Council, shall
determine the sufficiency, or lack thereof, of the reasons
presented for any requested extension of the six month
ORDINANCES 1247
period. If an extension is granted, notice of such extension
and the reasons therefore must be sent to City Council. To
the extent that neither the Bonds nor such bond anticipa-
tion notes are issued and sold within twelve months from
the date on which this Ordinance is approved by the Mayor
of City, the authority provided in this Ordinance for City
to issue and sell the Bonds and such bond anticipation notes
shall expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Maijor,
No. 455
(Council No. 828)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
A & R— WATERFORD JOINT VENTURE PROJECT
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue, sell and deliver,
at any time or from time to time, and in one or more
series, as limited obligations of the City and not upon its
full faith and credit, its industrial development revenue
bonds, to be designated ''Baltimore City, Maryland In-
dustrial Development Revenue Bonds (A & R — Water-
ford Joint Venture Project) ", in the aggregate principal
amount not to exceed $12,000,000, pursuant to the pro-
visions of Sub-section (50) of Article II of the Charter
of Baltimore City (1964 Revision), as amended, for the
sole and exclusive purpose of financing the costs, charges,
fees and expenses in connection with (a) the acquisition
of certain real property located in Baltimore City, to-
gether with all existing improvements located thereon,
(b) the construction of a multi-story, residential rental
apartment building and related improvements and ap-
1248 ORDINANCES Ord. No. 455
purtenances on said real property, (c) the acquisition
and installation of certain machinery and equipment
necessary or useful in connection with said real property,
apartment building, improvements and appurtenances,
and (d) the acquisition of such interests in land as may
be necessary or desirable for said apartment building,
improvements and appurtenances, together with roads,
other rights of access, utilities and other necessary facil-
ities ; authorizing the Mayor of the City to accept, on be-
half of the City, the letter of intent of A & R — Waterford
Joint Venture to the City dated October 12, 1981 ; making
certain legislative findings ; authorizing and empowering
the Board of Finance of the City, prior to the issuance,
sale and delivery of such bonds, to adopt a resolution pur-
suant to which the Board of Finance shall (a) prescribe,
among other things, but not limited to, the form, terms,
provisions, manner or method of issuing and selling, and
the time or times of issuance, and any and all other de-
tails of such bonds, and (b) do any and all things neces-
sary, proper or expedient in connection with the issu-
ance and sale of such bonds; authorizing the private
(negotiated) sale of such bonds; providing that A & R —
Waterword Joint Venture shall agree to submit any plans
and specifications to, and to coordinate with, the Depart-
ment of Housing and Community Development in con-
nection with the acquisition of such real property and in-
terests in land, the construction of the apartment building,
improvements and appurtenances to be located thereon,
and the acquisition and installation of the machinery and
equipment necessary or useful in connection with said
real property, apartment building, improvements and ap-
purtenances ; providing that, except under certain circum-
stances, if such bonds are not issued and sold within six
months after the date on which this Ordinance is ap-
proved by the Mayor of the City, the authorization pro-
vided for in this Ordinance for the City to issue and sell
such bonds shall expire ; and generally providing for and
determining various matters and details in connection
with the authorization, issuance, security, sale and pay-
ment of such bonds.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended (the ''Enabling
ORDINANCES 1249
Law"), empowers Mayor and City Council of Baltimore
(the "City") to issue revenue bonds and to use the pro-
ceeds of the sale of such revenue bonds to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City. Some of the general
objectives of the City, contemplated by the Enabling Law,
include the relief of conditions of unemployment in Balti-
more City, encouraging the increase of industry and a
balanced economy in Baltimore City, promoting economic
development in Baltimore City, and promoting the health,
welfare and safety of the residents of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the ''Letter of Intent") from A & R— Water-
ford Joint Venture, a Maryland joint venture (the "Bor-
rower"), pursuant to which the Borrower has requested
the City to participate in the financing of the costs,
charges, fees and expenses in connection with the acquisi-
tion by the Borrower of certain real property and inter-
ests in land located in Baltimore City (together with all
existing improvements located thereon), the construction,
by the Borrower of a multi-story, residential rental
apartment building and related improvements and ap-
purtenances on said on said real property, and the ac-
quisition and installation of certain machinery and equip-
ment necessary or useful in connection with said real
property, apartment building, improvements and appurte-
nances, (the "Project"), by issuing and selling industrial
development revenue bonds of the City in the aggregate
principal amount not to exceed $12,000,000 and by loan-
ing the proceeds of the revenue bonds to the Borrower,
upon the terms and conditions of a loan agreement to be
entered into between the City and the Borrower (the
"Loan Agreement"), as permitted by the Enabling Law
(such loan being herein referred to as the "Loan").
The Project will consist of (a) the acquisition by the
Borrower of certain real property containing approxi-
mately 64,896 square feet, more or less, located in Balti-
more City in the vicinity of North Poplar Grove Street
and North Franklintovvai Road, including, but not being
limited to those properties known as 716-758 North Pop-
lar Grove Street, 817-841 North Franklintown Road, and
two lots designated as Numbers 66 and 67 in the 800
block of North Franklintown Road, together with all
1250 ORDINANCES Ord. No. 455
existing improvements located thereon, (b) the construc-
tion of a multi-story, residential rental apartment build-
ing and related improvements and appurtenances on the
real property to be acquired, (c) the acquisition and in-
stallation of certain machinery and equipment necessary
or useful in connection with said real property, apartment
building, improvements and appurtenances, and (d) the
acquisition of such interests in land as may be necessary
or desirable for said apartment building, improvements
and appurtenances, together with roads, other rights of
access, utilities and other necessary facilities. After com-
pletion, it is contemplated that the Borrower will sell the
Project to the Housing Authority of Baltimore City,
which will thereafter operate the Project.
The Loan Agreement will require the Borrower (a) to
use the proceeds of the revenue bonds solely to finance the
completion of the Project, and (b) to make Loan pay-
ments which will be sufficient to enable the City to pay
the principal of, and interest and premium, if any, on the
revenue bonds when and as the same shall become due
and payable.
As security for the revenue bonds, the City will enter
into either (a) a trust agreement (the "Trust Agree-
ment") with a corporate trustee (the 'Trustee") to be
appointed by the Board of Finance of the City (the
''Board") or (b) an Assignment and Security Agree-
ment (the "Assignment") with the original purchaser of
the revenue bonds (the "Original Purchaser"), and a
trustee (which may be the Original Purchaser) (the
"Project Fund Trustee"). Pursuant to the Trust Agree-
ment, the City will assign to the Trustee or, if the Assign-
ment is entered into, the Original Purchaser, its suc-
cessors and assigns, (among other things) (a) all of the
City's right, title and interest in and to and remedies
under the Loan Agreement, including (without limita-
tion) any and all security referred to therein, excepting
only the right of the City to indemnification by the
Borrower and to payments to the City for expenses in-
curred by the City itself, (b) the receipts and revenues
of the City from the Loan, (c) certain moneys which are
at any time or from time to time on deposit with the
Trustee or the Project Fund Trustee, (d) all right, title
ORDINANCES 1261
and interest in and to and remedies with respect to any
and all other property of every description and nature
from time to time by delivery or by writing of any kind
conveyed, pledged, assigned or transferred, as and for
additional security for the revenue bonds, by the City or
by anyone on its behalf or with its written consent, to the
Trustee, or, if the Assignment is entered into, the Orig-
inal Purchaser, its successors or assigns, and (e) all of
the City's right, title and interest in and to and remedies
under such other documents, including (without limita-
tion) mortgages, deeds of trust, guaranties and security
instruments, as the Board shall deem necessary to effec-
tuate the issuance, sale and delivery of the revenue bonds
and which the Board shall approve by a resolution or
resolutions (the ''Resolution") to be adopted by the Board
prior to the issuance, sale and delivery of any of the
revenue bonds. If the Board finds and determines, pur-
suant to the Resolution, that the Project will be com-
pleted on or before the date of delivery of the revenue
bonds, the Board may provide in the Resolution that (a)
the Project Fund Trustee is not necessary, and (b) if the
Assignment is entered into, the City will enter into the
Assignment with only the original purchaser of the reve-
nue bonds.
The revenue bonds will be sold at a private (negoti-
ated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW :
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the Enabling Law, it
is hereby found and determined as follows :
(1) The issuance and sale of the revenue bonds by the
City pursuant to the Enabling Law in order to lend the pro-
ceeds thereof to the Borrower for the sole and exclusive pur-
pose of financing the costs of the Project will facilitate and
expedite the completion of the Project by the Borrower.
(2) The completion of the Project by the Borrower and
the financing thereof as provided in this Ordinance will
serve to promote the general purposes contemplated by the
Enabling Law by (a) sustaining jobs and employment in
1252 ORDINANCES Ord. No. 455
Baltimore City; (b) promoting economic devleopment in
Baltimore City; and (c) encouraging the increase of indus-
try and a balanced economy in Baltimore City.
(3) Neither the revenue bonds nor the interest thereon
shall ever constitute a pledge of or involve the faith and
credit or the taxing power of the City, and neither shall
ever constitute a debt of the City within the meaning of
Section 7 of Artaicle XI of the Constitution of Maryland or
any other constitutional, statutory or charter provision
limiting or restricting the sale or issuance of bonds, notes
or other obligations of the City, and neither shall ever con-
stitute or give rise to any pecuniary liability of the City.
The revenue bonds and the interest thereon shall be limited
obligations of the City, repayable by the City solely from
the revenue derived from Loan repayments (both principal
and interest) made to the City by the Borrower on account
of the Loan and from any other moneys made available to
the City for such purpose. The proceeds of the revenue
bonds will be paid directly to the Trustee or the Project
Fund Trustee to be held and disbursed by the Trustee as
provided in the Trust Agreement or by the Project Fund
Trustee as provided in the Assignment to be approved by
the Board in the Resolution, provided, however, that if the
Board finds and determines, pursuant to the Resolution,
that the Project will be completed on or before the date
of delivery of the revenue bonds, the Board may pro-
vide in the Resolution that the proceeds of the revenue
bonds will be paid directly to the Borrower, or for the ac-
count of the Borrower, to be used by the Borrower to pay
the costs of, or to reimburse the Borrower for the payment
of the costs of, the completion of the Project, as provided in
the Assignment to be approved by the Board in the Resolu-
tion. Payments of the principal of and premium (if any)
and interest on the Loan will be paid by the Borrower di-
rectly to the Trustee as provided in the Trust Agreement or
to the Original Purchaser, its successors and assigns, as
provided in the Assignment, to be approved by the Board
in the Resolution. No such moneys will be commingled with
the City's funds or will be subject to the absolute control of
the City, but will be subject only to such limited supervision
and checks as are deemed necessary or desirable by the City
to insure that the proceeds of the revenue bonds are used to
accomplish the public purposes of the Enabling Law and this
ORDINANCES 1253
Ordinance. The loan form of transaction authorized here-
under shall in no event constitute a capital project within
the meaning of any charter or statutory provision. The
public purposes expressed in the Enabling Law are to be
achieved by facilitating the completion of the Project by the
Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's prop-
erty shared by all holders of the Borrower's obligations
which rank and are secured equally with the Borrower's
obligations pursuant to the Loan Agreement, (b) any lien
and security interest created by the Loan Agreement, and
(c) any interest created by any other mortgage or deed of
trust or other security instrument executed and delivered
by the Borrower or any third party as security for the Loan
or the revenue bonds as the Board may provide for and ap-
prove in the Resolution. The security for the revenue bonds
shall be solely and exclusively (a) the absolute, irrevocable
and unconditional obligations of the Borrower to make the
payments required by the Loan Agreement, (b) moneys
realized from the liquidation of any lien and security inter-
est created by the Loan Agreement and of any other lien or
security interest created with respect to any property as
security for the Loan or the revenue bonds as the Board may
provide for and approve in the Resolution, and (c) moneys
realized from any guaranty of the revenue bonds or of the
Loan as the Board may provide for and approve in the
Resolution.
(5) The best interests of the City will be served by sell-
ing the revenue bonds at private (negotiated) sale, as au-
thorized by the Enabling Law, upon terms and conditions
approved by the Board in the Resolution.
Sec. 2. And be it further ordained, That the City is hereby
authorized and empowered to issue, sell and deliver, at any
time, or from time to time, and in one or more series, and as
limited obligations of the City and not upon its full faith
and credit, its Baltimore City, Maryland Industrial Develop-
ment Revenue Bonds (A & R — Waterford Joint Venture
Project) in the aggregate principal amount not to exceed
$12,000,000 (the ''Bonds"), subject to the provisions of this
Ordinance. The proceeds of the Bonds will be loaned to the
Borrower pursuant to the terms and provisions of the Loan
1254 ORDINANCES Ord. No. 455
Agreement, to be used by the Borrower for the sole and ex-
clusive purpose of financing the costs, charges, fees, and
expenses in connection with the completion of the Project.
The Bonds and the interest thereon shall be limited obliga-
tions of the City, repayable by the City solely from the
revenue derived from Loan repayments (both principal and
interest) made to the City by the Borrower pursuant to the
Loan Agreement and from any other moneys made available
to the City for such purpose. The security for the Bonds
shall be solely and exclusively as provided in Section 1 of
this Ordinance.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the commitment of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept the
Letter of Intent on behalf of the City in order to further
evidence the commitment of the City to issue the Bonds in
accordance with the terms and provisions of this Ordinance.
Sec. 4. And be it further ordained, That each of the Bonds
shall bear the descriptive title "Baltimore City, Maryland
Industrial Development Revenue Bonds (A & R — Waterford
Joint Venture Project)", provided that the descriptive title
may contain such other descriptive information as the Board
may prescribe in the Resolution (e.g. "1981 Series", or
"1982 Series"). The Bonds shall bear interest at the rate or
rates of interest to be determined by negotiation with the
original purchaser or purchasers of the Bonds and to be
approved and prescribed by the Board in the Resolution.
Sec. 5. And be it further ordained, That the definitive
Bonds, which may be engraved, printed or typewritten, in-
cluding any Trustee's Certificate of Authentication to be
endorsed thereon if the Trust Agreement is entered into,
shall be in such form, not inconsistent with the Enabling
Law and the provisions of this Ordinance, as the Board
may approve in the Resolution.
Sec. 6. And be it further ordained, That the Bonds shall
be executed in the name of the City and on its behalf by the
Mayor of the City, by his manual or facsimile signature,
and by the Director of Finance of the City, by his manual or
facsimile signature, and the corporate seal of the City or a
facsimile thereof shall be impressed or otherwise repro-
ORDINANCES 1255
duced thereon and attested by the Custodian of the City
Seal, by his manual signature. The Loan Agreement, the
Trust Agreement or the Assignment and, where applicable,
all other documents as the Board shall deem necessary to
effectuate the issuance, sale and delivery of the Bonds, shall
be executed in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature, and
the corporate seal of the City or a facsimile thereof shall be
impressed or otherwise reproduced thereon and attested by
the Custodian of the City Seal by his manual signature. In
case any officer whose signature or a facsimile of whose
signature shall appear on the Bonds or any of the aforesaid
documents shall cease to be such officer before the delivery
of the Bonds or any of the other aforesaid documents, such
signature or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City, the
Director of Finance of the City, the Custodian of the City
Seal and other officials of the City, are hereby authorized
and empowered to do all such acts and things and execute
such documents and certificates as the Board may deter-
mine in the Resolution to be necessary to carry out and com-
ply with the provisions hereof.
Sec. 7. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time, or from time
to time and in one or more series and in such amount or
amounts not exceeding, in the aggregate, the principal
amount of $12,000,000, as the Board shall prescribe in the
Resolution.
Sec. 8. And be it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of such
form and tenor, and shall be payable in such amounts, at
such times and at such place or places as the Board shall
prescribe in the Resolution.
Sec. 9. And be it further ordained, That the Bonds may
be subject to redemption prior to their stated maturities
upon such terms and conditions as the Board shall prescribe
in the Resolution.
Sec. 10. And be it further ordained. That prior to the
issuance, sale and delivery of the Bonds, the Board shall
adopt the Resolution pursuant to which Board shall :
1256 ORDINANCES Ord. No. 455
(a) prescribe the form, tenor, terms and conditions of
and security for the Bonds ;
(b) prescribe the actual amounts, rate or rates of inter-
est (or the method determining the same) denominations,
date, actual maturity or maturities, and the place or places
of payment of the Bonds, and the terms and conditions and
details under which the Bonds may be called for redemption
prior to their stated maturities ;
(c) if a Trust Agreement is entered into, appoint a bank
having trust powers, or a trust company, as Trustee for the
Bonds and, if necessary, appoint a paying agent or agents
for the Bonds which may be the Trustee;
(d) approve the form and contents, and authorize the
execution and delivery (where applicable of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
(iii) such other documents, including (without limitation)
mortgages, deeds of trust, guaranties and security instru-
ments as the Board shall deem necessary to approve in
order to effectuate the issuance, sale and delivery of the
Bonds ;
(e) determine the time of execution, issuance, sale and
delivery of the Bonds and prescribe any and all other details
of the Bonds ;
(f ) provide for the direct payment by the Borrower of
all costs, fees and expenses incurred by or on behalf of the
City in connection with the issuance, sale and delivery of
the Bonds, including (without limitation) costs of printing
(if any) and issuing the Bonds, legal expenses and com-
pensation to any person (other than full time employees of
the City) performing services by or on behalf of the City
in connection therewith ;
(g) if the Trust Agreement is entered into, provide for
the issuance and sale (subject to the passage of an appro-
priate ordinance authorizing the same as may be required
at the time) of one or more series of additional bonds and
one or more series of refunding bonds ; and
(h) do any and all things, and authorize the officials of
the City to do any and all things, necessary, proper or ex-
pedient in connection with the issuance, sale and delivery of
the Bonds.
ORDINANCES 1257
Sec. 11. And be it further ordained, That the Loan Agree-
ment and the Trust Agreement or the Assignment shall con-
tain such terms, provisions and conditions, not consistent
with the Enabling Law and the provisions of this Ordi-
nance, as the Board shall approve in the Resolution.
Sec. 12. A7id be it further ordained, That as authorized
by the Enabling Law, the Bonds shall be sold at private
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 13. And be it further ordained, That neither the
Bonds nor the interest theron shall ever constitute a pledge
of or involve the faith and credit or the taxing power of the
City, and neither shall ever constitute a debt of the City
within the meaning of Section 7 of Article XI of the Consti-
tution of Maryland or other constitutional, satutory or char-
ter provisions limiting or restricting the sale or issuance of
bonds, notes or other obligations of the City, and neither
shall ever constitute or give rise to any pecuniary liability
of the City. The Bonds, and the interest theron, shall be
limited obligations of the City, the principal of and interest
on which Bonds shall be payable by the City solely from the
revenue derived from Loan repajTaents (both principal and
interest) made to the City by the Borrower on account of
the Loan and, to the extent provided by the Board in the
Resolution, from the proceeds of the Bonds, and from any
other moneys made available to the City for such purpose.
The proceeds of the Bonds will be paid directly to the Trus-
tee or the Project Fund Trustee to be held and disbursed by
the Trustee as provided in the Trust Agreement or by the
Project Fund Trustee as provided in the Assignment to be
approved by the Board in the Resolution, provided, how-
ever, that if the Board finds and determines, pursuant to
the Resolution, that the Project will be completed on or be-
fore the date of delivery of the Bonds, the Board may pro-
vide in the Resolution that the proceeds of the Bonds will be
paid directly to the Borrower, or for the account of the
Borrower, to be used by the Borrower to pay the costs of,
or to reimburse the Borrower for the pa^Tiient of the costs
of, the completion of the Project, as provided in the Assign-
ment to be approved by the Board in the Resolution. No
such moneys will be commingled with the City's funds or
1258 ORDINANCES Ord. No. 455
will be subject to the absolute control of the City, but will
be subject to such limited supervision and checks as are
deemed necessary or desirable by the City to insure that the
proceeds of the Bonds are used to accomplish the public pur-
poses of the Enabling Law and this Ordinance.
Sec. 14. And be it further ordained, That in consideration
of the purchase and acceptance of the Bonds by those who
shall hold the Bonds from time to time, the City does hereby,
and by the execution and delivery of the Trust Agreement
or the Assignment to be approved by the Board shall, set
aside and pledge the income and revenue under the Loan
Agreement (other than pajTnents to the City for indemnifi-
cation or to reimburse the City for expenses incurred by the
City itself) to the Trustee or, if the Assignment is entered
into, the Original Purchaser, its successors and assigns, to
be used and applied for the pajTnent of the principal of and
interest on the Bonds. Pursuant to the terms of the Loan
Agi'eement to be approved by the Board in the Resolution,
payments sufficient for the prompt pa>Taent when due of
the principal of, premium, if any, and interest on the Bonds
are to be paid by the Borrower to the Trustee for the benefit
of the holders of the Bonds, or, if the Assignment is entered
into, to the Original Purchaser, its successors and assigns,
for the account of the City.
Sec. 15. And be it further ordained, That the Borrower
shall agree that :
(a) It will submit any plans and specifications for the
Project to the Department of Housing and Communitj^ De-
velopment for approval, which approval shall not be with-
held unreasonably ; and
(b) It and its developers will work with the design ad-
visory group appointed by the Department of Housing and
Community Development in order to achieve high quality
and design.
Sec. 16. And be it further ordained. That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid or
unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity, unconstitutionality^ or
ORDINANCES 1259
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
Ordinance, or their application to other persons or circum-
stances. It is hereby declared to be the legislative intent that
this Ordinance would have passed if such illegal, invalid or
unconstitutional provision, sentence, clause, section or part
had not been included herein, and if the person or circum-
stances to which this Ordinance or any part hereof are in-
applicable had been specifically exempted herefrom.
Sec. 17. And be it further ordained, That, if the Bonds
are not issued and sold within six months from the date on
which this Ordinance is approved by the Mayor of the City,
the authorization provided in this Ordinance for the City to
issue and sell the Bonds shall expire; provided, however,
that the Board may, after a showing of good cause at a
public hearing held before the Board, extend such authoriza-
tion for one additional term not to exceed six months. The
Board, in its sole discretion, shall determine the sufficiency,
or lack thereof, of the reasons presented for any requested
extension of this Ordinance. If an extension is granted,
notice of such extension and the reasons therefor must be
sent to the City Council.
Sec. 18. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Maijor.
No. 456
(Council No. 829)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
H. B. NORTHWAY LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
1260 ORDINANCES Ord. No. 456
as limited obligations of the City and not upon its
full faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
$3,500,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclu-
sive purpose of financing the construction, reconstruc-
tion, renovation, and/or rehabilitation of improvements
which are owned bj' H. B. North way Limited Partner-
ship or assigns designated by the Board of Finance
and used as rental dwelling units and offices, and
to provide long term financing of the land and improve-
ments; authorizing the Mayor of the City, on behalf
of the City, to accept the letter of intent dated Octo-
ber 12, 1981, from H. B. Northway Limited Partner-
ship or assigns designated by the Board of Finance
to the City, making certain legislative findings; au-
thorizing and empowering the Board of Finance of
the City, by a resolution or resolutions adopted prior to
the issuance, sale and deliveiy of am' series of such
bonds, to (a) prescribe, among other things but not
limited to, the form, terms, pro\isions, manner or method
of issuing and selling (including negotiated as well as
competitive bid sale) , and the time or times of issuance,
and any and all other details of such bonds, and (b) do
any and all things necessary, proper or expedient in
connection with the issuance and sale of such bonds;
providing that H. B. Northway Limited Partnership
or assigns designated by the Board of Finance shall
agree to submit any plans and specifications to, and
to coordinate with, the Depai±ment of Housing and
Community Development in connection with the com-
pletion of such project; providing that such bonds (or
anticipation notes issued in anticipation of the issuance
of such bonds) must be issued and sold within six
months from the date this Ordinance is approved by
the Mayor, unless the Board of Finance approves one
six month extension as provided in this Ordinance; au-
thorizing the issuance of notes in anticipation of the
issuance of such revenue bonds ; and generally providing
for and deteiTnining various matters and details in
connection with the issuance and sale of such bonds and
bond anticipation notes.
ORDINANCES 1261
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the ''Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the ''City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in con-
nection with the property, facilities, developments and
improvements whose financing is undertaken by the
issuance of such bonds, notes or other obligations, (II)
the revenues from or arising in connection with any
contracts, mortgages or other securities purchased or
othei-wise acquired with the proceeds of such bonds,
notes or other obligations, (III) the contracts, mort-
gages or other securities purchased or othenvise ac-
quired ^\ith the proceeds of such bonds, notes or other
obligations, or (IV) any combination of (I), (II) or
(III). The purposes, objects and powers of the City
contemplated by the Enabling Law includes the relief
of conditions of unemplo\Tnent in Baltimore City, en-
couraging the increase of industry and a balanced econ-
omy in Baltimore City, promoting economic develop-
ment in Baltimore City, and promoting the health, wel-
fare, safety of the residents of Baltimore City.
The City has received a letter of intent dated Octo-
ber 12, 1981, (the "Letter of Intent") from H. B. North-
way Limited Partnership or assigns designated by the
Board of Finance (the "Borrower"), pursuant to which
the Borrower has requested the City to pai-ticipate
in the financing of the costs of the acquisition and/or
development by the Borrower of a certain project in
Baltimore City, Maryland (the "Project"), by issuing
and selling the City's industrial development i-evenue
'bonds in the aggregate principal amount not to exceed
$3,500,000, (the "Bonds"), and by making the proceeds
of the Bonds available to the Borrower to be used by
the Borrower for the sole and exclusive purpose of fi-
1262 ORDINANCES Ord. No. 456
nancing the costs of the acquisition and/or development
of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the
City as mentioned in the Enabling Law, will consist
generally of (a) the renovation, rehabilitation, construc-
tion, and/or reconstruction of any existing improvements
located at 3700-3702 North Charles Street to be used
as rental dwellings and offices which will be owned and
operated by the Borrower, and (b) the long term financ-
ing of the land and improvements. The Borrower antici-
pates that the units will be leased to various tenants
whose identities are unknown at this time and agrees
that the units will not be converted into condominiums.
The Enabling Law provides that the City may au-
thorize and empower the Board of Finance of the City
(the "Board") by resolution to determine and set forth
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
ORDINANCES 1263
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industiy and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $3,500,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der tenns and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And he it further ordained. That this Ordinance
constitutes the present intent of the City to issue the Bonds,
1264 ORDINANCES Ord. No. 456
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terais and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
ORDINANCES 1265
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that :
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work mth the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And he it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, b}^ his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and deliveiy of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
1266 ORDINANCES Ord. No. 456
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the "Bond Anticipation
Noto Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
ORDINANCES 1267
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project ;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
1268 ORDINANCES Ord. No. 456
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And he it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
ORDINANCES 1269
No. 457
(Council No. 830)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
OXFORD CONSTRUCTION SERVICES, INC.
FOR the purpose of authorizing and empowering Maj^or
and City Council of Baltimore to issue and sell, at any-
time or from time to time and in one or more series,
as limited obligations of the City and not upon its
full faith and credit, its industnal development revenue
bonds, in the aggregate principal amount not to exceed
$6,500,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclu-
sive purpose of financing the costs, charges, fees and
expenses in connection \\ith the acquisition by Oxford
Services, Inc. of certain real property located in Bal-
timore City together with any improvements located
thereon, and the construction, reconstruction, renova-
tion, and/or rehabilitation of improvements which will
be owned by Oxford Construction Services, Inc. and
used as rental dwelling units which will be sold to the
Housing Authority of Baltimore City upon completion
of construction; authorizing the Mayor of the City, on
behalf of the City, to accept the letter of intent dated
October 12, 1981, from Oxford Construction Services, Inc.
to the City, making certain legislative findings; au-
thorizing and empowering the Board of Finance of the
City, by a resolution or resolutions adopted prior to
the issuance, sale and delivery of any series of such
bonds, to (a) prescribe, among other things but not
limited to, the form, terms, provisions, manner or method
of issuing and selling (including negotiated as well
as competitive bid sale), and the time or times of issu-
ance, and any and all other details of such bonds, and
(b) do any and all things necessaiy, proper or expedient
in connection mth the issuance and sale of such bonds;
providing that Oxford Construction Services, Inc. shall
agree to submit any plans and specifications to, and to
coordinate with, the Department of Housing and Com-
1270 ORDINANCES Ord. No. 457
munity Development in connection with the completion
of such project; providing that such bonds (or antici-
pation notes issued in anticipation of the issuance of
such bonds) must be issued and sold within six months
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one six month
extension as provided in this Ordinance; authorizing
the issuance of notes in anticipation of the issuance of
such revenue bonds; and generally providing for and
determining various matters and details in connection
'with the issuance and sale of such bonds and bond antici-
pation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the ''Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the ''City") to borrow money to finance under-
takings for the accomplishment of any of the puiiM>ses,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in con-
nection with the property, facilities, developments and
improvements whose financing is undertaken by the
issuance of such bonds, notes or other obligations, (II)
the revenues from or arising in connection wath any
contracts, mortgages or other securities purchased or
otherwise acquired \vith the proceeds of such bonds,
notes or other obligations, (III) the contracts, mort-
gages or other securities purchased or othenvise ac-
quired \\ith the proceeds of such bonds, notes or other
obligations, or (IV) any combination of (I), (II) or
(III). The puiT>oses, objects and powers of the City
contemplated by the Enabling Law includes the relief
of conditions of unemployment in Baltimore City, en-
couraging the increase of industry and a balanced econ-
omy in Baltimore City, promoting economic develop-
ment in Baltimore City, and promoting the health, wel-
fare safety of the residents of Baltimore City.
ORDINANCES 1271
The City has received a letter of intent dated Octo-
ber 12, 1981, (the ''Letter of Intent") from Oxford
Construction Services, Inc. (the ''Borrower"), pursuant
to which the Borrower has requested the City to par-
ticipate in the financing of the costs of the acquisition
and/or development by the Borrower of a certain project
in Baltimore City, Maryland (the "Project"), by issuing
and selling the City's industrial development revenue
bonds in the aggregate principal amount not to exceed
$6,500,000 (the "Bonds"), and by making the proceeds
of the Bonds available to the Borrower to be used by
the Borrower for the sole and exclusive purpose of fi-
nancing the costs of the acquisition and/or development
of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the
City as mentioned in the Enabling Law, will consist
generally of (a) the acquisition by the Borrower of
certain real property located in the 1000 block of West
Baltimore Street in the Poppleton Urban Renewal Area,
(b) the construction of rental dwelling units for the
elderly, and (c) sale of the units to the Housing Authority
of Baltimore City upon completion of construction.
The Enabling Law provides that the City may au-
thorize and empower the Board of Finance of the City
!(the "Board") by resolution to determine and set forth
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
1272 ORDINANCES Ord. No. 457
ceeds thereof available to the Borrower for the sole and
exclusive purix)se of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
emplojonent in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $6,500,000,
ORDINANCES 1273
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. Ajid be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the teiTns and provisions
of this Ordinance.
Sec. 4. And he it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board m^y deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
1274 ORDINANCES Ord. No. 457
Sec. 5. And he it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maiyland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, moii>
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Depai*tment of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
ORDINANCES 1275
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply vdth the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
1276 ORDINANCES Ord. No. 457
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
ORDINANCES 1277
Sec. 10. And he it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
1278 ORDINANCES Ord. No. 458
No. 458
(Council No. 831)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
NEIGHBORHOOD RENTAL SERVICES, INC.
FOR the pui-pose of authorizing and empowering Mayor
and Cit}^ Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
$1,600,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclusive
purpose of financing the costs, charges, fees and ex-
penses in connection with the acquisition by Neighbor-
hood Rental Services, Inc. of certain real property in
the Patterson Park Area in Baltimore City, together
with any improvements located thereon, and the con-
struction, reconstruction, renovation, and/or rehabilita-
tion of improvements which will be o^\Tied by Neigh-
borhood Rental Seiwices, Inc. and used as rental dwelling
units, and to provide long tenn financing of the land
and improvements; authorizing the Mayor of the City,
on behalf of the City, to accept the letter of intent dated
October 12, 1981, from Neighborhood Rental Sendees,
Inc. to the City, making ceii^ain legislative findings;
authorizing and empowering the Board of Finance of
the City, by a resolution or resolutions adopted prior
to the issuance, sale and deliver}' of any series of such
bonds, to (a) prescribe, among other things but not
limited to, the foiTti, terms, provisions, manner or method
of issuing and selling (including negotiated as well as
competitive bid sale), and the time or times of issuance,
and any and all other details of such bonds, and (b)
do any and all things necessarj", proper or expedient
in connection with the issuance and sale of such bonds;
providing that Neighborhood Rental Services, Inc. shall
agree to submit any plans and specifications to, and to
coordinate ^^ath, the Department of Housing and Com-
ORDINANCES 1279
munity Development in connection with the completion
of such project; providing that such bonds (or antic-
ipation notes issued in anticipation of the issuance of
such bonds) must be issued and sold within one year
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one one year
extension as provided in this Ordinance ; authorizing the
issuance of notes in anticipation of the issuance of such
revenue bonds; and generally providing for and deter-
mining various matters and details in connection with
the issuance and sale of such bonds and bond anticipa-
tion notes.
RECITALS
Sub-sections (50) and (51) of Article II of the Char-
ter of Baltimore City (1964 Revision, as amended)
(the ''Enabling Law"), empowers the Mayor and City
Council of Baltimore (the ''City") to borrow money to
finance undertakings for the accomplishment of any of
the purposes, objects and powers of the City and in
connection there^\ath to issue bonds, notes, or other
obligations (including refunding bonds, notes or other
obligations), all of which shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues fi'om
or arising in connection with the property, facilities,
developments and improvements whose financing is un-
dertaken by the issuance of such bonds, notes or other
obligations, (II) the revenues from or arising in con-
nection with any contracts, mortgages or other secur-
ities purchased or otherwise acquired with the proceeds
of such bonds, notes or other obligations, (III) the
contracts, mortgages or other securities purchased or
othei-wise acquired with the proceeds of such bonds,
notes or other obligations, or (IV) any combination of
(I), (II) or (III). The purposes, objects and powers of
the City contemplated by the Enabling Law includes the
relief of conditions of unemployment in Baltimore City,
encouraging the increase of industry and a balanced
economy in Baltimore City, promoting economic devel-
opment in Baltimore City, and promoting the health,
welfare safety of the residents of Baltimore City.
1280 ORDINANCES Ord. No. 458
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent") from Neighborhood
Rental Services, Inc. (the "Borrower"), pursuant to
which the Borrower has requested the City to partic-
ipate in the financing of the costs of the acquisition
and/or development by the Borrower of a certain proj-
ect in Baltimore City, Maiyland (the 'Troject"), by
issuing and selling the City's industrial development
revenue bonds in the aggregate principal amount not
to exceed 31,600,000, (the "Bonds"), and by making the
proceeds of the Bonds available to the Borrower to be
used by the Borrower for the sole and exclusive pur-
pose of financing the costs of the acquisition and /or
development of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the pui']X)ses, objects and powers of the City
as mentioned in the Enabling Law, will consist gen-
erally of (a) the acquisition by the Borrower of cei'tain
real property in the area of East Baltimore bounded
generally by Broadway, Highland Avenue, Eager Street
and Eastern Avenue for use as rental dwellings, (b)
the renovation, rehabilitation, construction, and or re-
construction, of any existing improvements which ^^ill
be owned and operated by the Borrower, and (c) the
long term financing of the land and improvements. The
Borrower anticipates that the units will be leased to
various tenants who identities are unkno^\Ti at this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale) , and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessaiy,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
ORDINANCES 1281
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purix)se of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will seiwe to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
emplo\Tnent in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industi'v and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all vnthin
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And he it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
1282 ORDINANCES Ord. No. 458
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $1,600,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. o. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And he it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
ORDINANCES 1283
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the 'City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
1284 ORDINANCES Ord. No. 458
on its behalf by the ^Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
docimients as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And he it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
ORDINANCES 1285
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as v^ell as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of a^y document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der v^hich the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
1286 ORDINANCES Ord. No. 458
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within one year from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such one year
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed one year
from the date on which the first one year period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the one year period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
ORDINANCES 1287
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Maijor.
No. 459
(Council No. 832)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
HOUSING ASSISTANCE CORPORATION
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $615,000
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive purpose of financ-
ing the costs, charges, fees and expenses in connection
with the acquisition by Housing Assistance Corporation
of certain real property located at 2400 Linden Avenue
in the Reservoir Hill Urban Renewal Area, in Baltimore
City together with any improvements located thereon,
and the construction, reconstruction, renovation, and/or
rehabilitation of improvements which will be owned by
Housing Assistance Corporation and used as rental
dwelling units and to provide long term financing of the
land and improvements; authorizing the Mayor of the
City, on behalf of the City, to accept the letter of intent
dated October 12, 1981, from Housing Assistance Cor-
poration to the City, making certain legislative findings ;
1288 ORDINANCES Ord. No. 459
authorizing and empowering the Board of Finance of
the City, by a resolution or resolutions adopted prior
to the issuance, sale and delivery of any series of such
bonds, to (a) prescribe, among other things but not
limited to, the form, terms, provisions, manner or
method of issuing and selling (including negotiated as
well as competitive bid sale) , and the time or times of
issuance, and any and all other details of such bonds,
and (b) do any and all things necessary, proper or ex-
pedient in connection with the issuance and sale of such
bonds; providing that Housing Assistance Corporation
shall agree to submit any plans and specifications to,
and to coordinate v^ith, the Department of Housing and
Community Development in connection with the comple-
tion of such project; providing that such bonds (or
anticipation notes issued in anticipation of the issuance
of such bonds) must be issued and sold within six
months from the date this Ordinance is approved by
the Mayor, unless the Board of Finance approves one
six month extension as provided in this Ordinance; au-
thorizing the issuance of notes in anticipation of the
issuance of such revenue bonds; and generally providing
for and determining various matters and details in
connection with the issuance and sale of such bonds and
bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Bal-
timore City (1964 Re\asion, as amended) (the ''Enabling
Law"), empowers the Mayor and City Council of Bal-
timore (the "City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connec-
tion with the property, facilities, developments and im-
provements vrhose financing is undertaken by the issu-
ance of such bonds, notes or other obligations, (II) the
revenues from or arising in connection vdth any con-
ORDINANCES 1289
tracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of such bonds, notes or
other obligations, (III) the contracts, mortgages or other
securities purchased or otherwise acquired with the pro-
ceeds of such bonds, notes or other obligations, or (IV)
any combination of (I), (II) or (III). The purposes,
objects and powers of the City contemplated by the En-
abling Law includes the relief of conditions of unem-
ployment in Baltimore City, encouraging the increase of
industry and a balanced economy in Baltimore City,
promoting economic development in Baltimore City, and
promoting the health, welfare, safety of the residents
of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent") from Housing Assist-
ance Corporation (the "Borrower"), pursuant to which
the Borrower has requested the City to participate in
the financing of the costs of the acquisition and/or
development by the Borrower of a certain project in
Baltimore City, Maryland (the "Project"), by issuing
and selling the City's industrial development revenue
bonds in the aggregate principal amount not to exceed
$615,000 (the "Bonds"), and by making the proceeds of
the Bonds available to the Borrower to be used by the
Borrower for the sole and exclusive purpose of financing
the costs of the acquisition and/or development of the
Project by the BoiTower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition by the Borrower of certain real
property located at 2400 Linden Avenue in the Reservoir
Hill Urban Renewal Area for use and rental dwellings,
(b) the renovation, rehabilitation, construction, and/or
reconstruction, of any existing improvements which will
be owned and operated by the Borrower, (c) the long
term financing of the land and improvements. The Bor-
rower anticipates that the units will be leased to various
tenants whose identities are unknown at this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
1290 ORDINANCES Ord. No. 459
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing and
selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper
or expedient in connection with the issuance and sale of
the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economv in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
ORDINANCES 1291
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection v^ith any contracts, mortgages or
other securities purchased or othenvise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired v^ith
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $615,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And he it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terais and provisions
of this Ordinance.
Sec. 4. And he it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
1292 ORDINANCES Ord. No. 459
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agi'ee-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And he it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the t-axing power of the City, and shall not constitute a
debt of the City, all \nthin the meaning of Section 7 of
Article XI cf the Constitution of Maiyland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or othenvise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained. That the Borrower
shall agree that:
ORDINANCES 1293
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing- and Community Development m.ay refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, b}^ his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and deliveiy of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
1294 ORDINANCES Ord. No. 459
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
ORDINANCES 1295
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance v^ith the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of v^hich such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, v^hen, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
1296 ORDINANCES Ord. No. 460
of the City; provided, however, that the Board, after a
shov^ing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Ma^jor.
No. 460
(Council No. 833)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
LEXINGTON-GREEN LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $2,600,000,
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
ORDINANCES 1297
amended), for the sole and exclusive purpose of financing
the costs, charges, fees and expenses in connection with
the acquisition by Lexington-Green Limited Partnership
of certain real property in Baltimore City together with
any improvements located thereon, and the construction,
reconstruction, renovation, and/or rehabilitation of im-
provements which will be ovnied by Lexington-Green
Limited Partnership and used as rental dwelling units,
and to provide long term financing of the land and im-
provements; authorizing the Mayor of the City, on be-
half of the City, to accept the letter of intent dated
October 12, 1981, from Lexington-Green Limited Part-
nership to the City, making certain legislative findings;
authorizing and empowering the Board of Finance of
the City, by a resolution or resolutions adopted prior to
the issuance, sale and delivery of any series of such
bonds, to (a) prescribe, among other things but not
limited to, the form, terms, provisions, manner or method
of issuing and selling (including negotiated as well as
competitive bid sale), and the time or tim^es of issuance,
and any and all other details of such bonds, and (b)
do any and all things necessary, proper or expedient
in connection with the issuance and sale of such bonds;
providing that Lexington-Green Limited Partnership
shall agree to submit any plans and specifications to,
and to coordinate with, the Department of Housing and
Community Development in connection with the com-
pletion of such project; providing that such bonds (or
anticipation notes issued in anticipation of the issuance
of such bonds) must be issued and sold within six months
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one six month
extension as provided in this Ordinance; authorizing
the issuance of notes in anticipation of the issuance of
such revenue bonds; and generally providing for and
determining various matters and details in connection
with the issuance and sale of such bonds and bond an-
ticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Bal-
timore City (1964 Revision, as amended) (the ''Ena-
bling Law"), empowers the Mayor and City Council of
1298 ORDINANCES Ord. No. 460
Baltimore (the "City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all
of which shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in
connection with the property, facilities, developments
and improvements who financing is undertaken by the
issuance of such bonds, notes or other obligations, (II)
the revenues from or arising in connection with any
contracts, mortgages or other securities purchased or
otherwise acquired with the proceeds of such bonds,
notes or other obligations, (III) the contracts, mort-
gages or other securities purchased or othervvase acquired
^^'ith the proceeds of such bonds, notes or other obli-
gations, or (IV) any combination of (I), (II) or (III).
The pui-poses, objects and powers of the City contem-
plated by the Enabling Law includes the relief of con-
ditions of unemployment in Baltimore City, encoui^aging
the increase of industry and a balanced economy in
Baltimore City, promoting economic development in Bal-
timore City, and promoting the health, welfare, safety
of the residents of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the ''Letter of Intent") from Lexington-Green
Limited Partnership (the ''Borrower"), pursuant to
which the Borrower has requested the City to paiidc-
ipate in the financing of the costs of the acquisition
and/or development by the Borrower of a certain proj-
ect in Baltimore City, Maryland (the "Project"), by
issuing and selling the City's industrial development
revenue bonds in the aggregate principal amount not
to exceed $2,600,000, (the "Bonds"), and by making
the proceeds of the Bonds available to the Borix)wer to
'be used by the Borrower for the sole and exclusive pur-
pose of financing the costs of the acquisition and/or
development of the Project by the Borrower.
The Project, which is an "undertaking" which \vill
accomplish the pui'poses, objects and powers of the
City as mentioned in the Enabling Law, ^\dll consist
ORDINANCES 1299
generally of (a) the acquisition by the Borrower of
certain real property located at 617-631 West Lexing-
ton Street in the Orchard-Biddle Urban Renewal Area
for use as rental dwellings, (b) the renovation, re-
habilitation, construction, and/or reconstruction of any
existing improvements which will be owned and op-
erated by the Borrower, and (c) the long teiTn financ-
ing of the land and improvements. The Borrower antic-
ipates that the units will be leased to various tenants
whose identities are unknown at this time.
The Borrower, through the City has applied for an
Urban Development Action Grant, the proceeds of which
will be used to pay a portion of the costs of the acqui-
sition and development of the Project.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
''Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordmned by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
1300 ORDINANCES Ord. No. 460
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $2,600,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And be it further ordained. That this Ordinance
constitutes the present intent of the City to issue the Bonds,
ORDINANCES 1301
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
1302 ORDINANCES Ord. No. 460
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or othei^vise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. Aiid be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work ^^ith the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And he it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
ORDINANCES 1303
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply vdth the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the "Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, pro\isions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
1304 ORDINANCES Ord. No. 460
all other details of such bond anticipation notes and the
issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tom.ary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (\\ithout limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any pro\ision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ORDINANCES 1305
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, how^ever, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
1306 ORDINANCES Ord. No. 461
No. 461
(Council No. 834)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
BOKEL JOINT VENTURE
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
$1,000,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclusive
purpose of financing the costs, charges, fees and ex-
penses in connection with the acquisition by Bokel Joint
Venture of certain real property in Baltimore City to-
gether with any improvements located thereon, and
the construction, reconstruction, renovation, and /or re-
habilitation of improvements which will be o\\Tied by
Bokel Joint Venture and used as a community center
vrith mxUltiple commercial uses, and to pro\'ide long term
financing of the land and improvements; authorizing
the Mayor of the City, on behalf of the City, to accept
the letter of intent dated October 12, 1981, from Bokel
Joint Venture to the City, making certain legislative
findings; authorizing and empowering the Board of
Finance of the City, by a resolution or resolutions
adopted prior to the issuance, sale and delivery of any
series of such bonds, to (a) prescribe, among other
things but not limited to, the form, terms, provisions,
manner or method of issuing and selling (including nego-
tiated as well as competitive bid sale), and the time or
times of issuance, and any and all other details of such
bonds, and (b) do any and all things necessary, proper
or expedient in connection with the issuance and sale
of such bonds ; providing that Bokel Joint Venture shall
agree to submit any plans and specifications to, and to
coordinate with, the Department of Housing and Com-
munity Development in connection with the completion
of such project; providing that such bonds (or antici-
ORDINANCES 1307
pation notes issued in anticipation of the issuance of
such bonds) must be issued and sold within six months
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one six month
extension as provided in this Ordinance; authorizing
the issuance of notes in anticipation of the issuance
of such revenue bonds; and generally providing for
and determining various matters and details in con-
nection vv^ith the issuance and sale of such bonds and
bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Bal-
timore City (1964 Revision, as amended) (the "Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the "City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (including
refunding bonds, notes or other obligations), all of which
s;hall be fully negotiable, payable, as to both principal
and interest, solely from and secured solely by a pledge
of (I) the revenues from or arising in connection with
the property, facilities, developments and improvements
whose financing is undertaken by the issuance of such
bonds, notes or other obligations, (II) the revenues from
or arising in connection with any contracts, mortgages
or other securities purchased or otherwise acquired with
the proceeds of such bonds, notes or other obligations,
(III) the contracts, mortgages or other securities pur-
chased or otherwise acquired with the proceeds of such
bonds, notes or other obligations, or (IV) any combina-
tion of (I), (II) or (III). The purposes, objects and
powers of the City contemplated by the Enabling Law
includes the relief of conditions of unemployment in
Baltimore City, encouraging the increase of industry
and a balanced economy in Baltimore City, promoting
economic development in Baltimore City, and promoting
the health, welfare, safety of the residents of Baltimore
City.
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent") from Bokel Joint
1308 ORDINANCES Ord. No. 4G1
Venture (the "Borrower"), pursuant to which the Bor-
rower has requested the City to participate in the fi-
nancing of the costs of the acquisition and/or develop-
ment by the Borrower of a certain project in Baltimore
City, Maryland (the ''Project"), by issuing and selling
the City's industrial development revenue bonds in the
aggregate principal amount not to exceed $1,000,000,
(the ''Bonds"), and by making the proceeds of the Bonds
available to the Borrower to be used by the Borrower
for the sole and exclusive purpose of financing the costs
of the acquisition and/or development of the Project by
the Borrower.
The Project, which is an "undertaking"' which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition by the Borrower of certain real
property located at the southwest corner of York Road
and Notre Dame Lane in the York-Woodbourne Area
for use as a community center with multiple commercial
uses, (b) the renovation, rehabilitation, construction,
and/or reconstruction of any existing improvements
which will be owned and operated by the Borrower, and
(c) the long term financing of the land and improvements.
The Enabling Law provides that the City may au-
thorize and empower the Board of Finance of the City
(the "Board") by resolution to determine and set forth
the form, terms, provisions, manner or method of issu-
ing and selling (including negotiated as well as competi-
tive bid sale), and the time or times of issuance, and
any and all other details of the Bonds and the issuance
and sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW :
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ORDINANCES 1309
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $1,000,000,
1310 ORDINANCES Ord. No. 461
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to:
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
ORDINANCES 1311
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
sha;ll not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by 'a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work wdth the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
1312 ORDINANCES Ord. No. 461
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate oflficial of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. A7id be it fzirther ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
ORDINANCES 1313
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
1314 ORDINANCES Ord. No. 461
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. A7id be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and wdthout action by
the City Council, shall determine the sufl^ciency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
V/ILLIAM DONALD SCHAEFER, Mayor.
ORDINANCES 1315
No. 462
(Council No. 835)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
TRINITY PLACE LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
as limited obligations of the City and not upon its
full faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
$4,000,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclusive
purpose of financing the costs, charges, fees and ex-
penses in connection with the acquisition by Trinity
Place Limited Partnership of certain real property lo-
cated at the southeast corner of the intersection of
Bank Street and Exeter Street in Little Italy, in Bal-
timore City, together with any improvements located
thereon, and the construction, reconstruction, renova-
tion, and/or rehabilitation of improvements which will
be owned by Trinity Place Limited Partnership and used
as rental dwelling units, and to provide long term fi-
nancing of the land and improvements; authorizing
the Mayor of the City, on behalf of the City, to accept
the letter of intent dated October 12, 1981, from Trinity
Place Limited Partnership to the City, making certain
legislative findings; authorizing and empowering the
Board of Finance of the City, by a resolution or resolu-
tions adopted prior to the issuance, sale and delivery
of any series of such bonds, to (a) prescribe, among
other things but not limited to, the form, terms, provi-
sions, manner or method of issuing and selling (includ-
ing negotiated as well as competitive bid sale), and the
time or times of issuance, and any and all other details
of such bonds, and (b) do any and all things necessary,
proper or expedient in connection with the issuance and
sale of such bonds; providing that Trinity Place Limited
Partnership shall agree to submit any plans and specifi-
1316 ORDINANCES Ord. No. 462
cations to, and to coordinate with, the Department of
Housing and Community Development in connection with
the completion of such project; providing that such bonds
(or anticipation notes issued in anticipation of the issu-
ance of such bonds) must be issued and sold within six
months from the date this Ordinance is approved by the
Mayor, unless the Board of Finance approves one six
month extension as provided in this Ordinance; author-
izing the issuance of notes in anticipation of the issuance
of such revenue bonds; and generally providing for and
determining various matters and details in connection
with the issuance and sale of such bonds and bond
anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the "Enabling
Law"), empowers the Mayor and City Council of Bal-
timore (the "City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the property, facilities, developments and improve-
ments whose financing is undertaken by the issuance of
such bonds, notes or other obligations, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of such bonds, notes or other obliga-
tions, (III) the contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of
such bonds, notes or other obligations, or (IV) any
combination of (I), (II) or (III). The purposes, objects
and powers of the City contemplated by the Enabling
Law includes the relief of conditions of unemployment
in Baltimore City, encouraging the increase of industry
and a balanced economy in Baltimore City, promoting
economic development in Baltimore City, and promoting
the health, welfare, safety of the residents of Baltimore
City.
ORDINANCES 1317
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent") from Trinity Place
Limited Partnership (the "Borrower"), pursuant to
which the Borrower has requested the City to partici-
pate in the financing of the costs of the acquisition and/
or development by the Borrower of a certain project in
Baltimore City, Maryland (the "Project"), by issuing
and selling the City's industrial development revenue
bonds in the aggregate principal amount not to exceed
$4,000,000, (the "Bonds"), and by making the proceeds
of the Bonds available to the Borrower to be used by the
Borrower for the sole and exclusive purpose of financing
the costs of the acquisition and/or development of the
Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist gener-
ally of (a) the acquisition by the Borrower of certain
real property located at the southeast corner of the inter-
section of Bank and Exeter Streets in Little Italy for
use as rental dwellings, (b) the renovation, rehabilita-
tion, construction, and/or reconstruction of any existing
improvements which will be owned by the Borrower, and
(c) the long term financing of the land and improve-
ments. The Borrower anticipates that the units will be
leased to various tenants whose identities are unknown
at this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper
or expedient in connection with the issuance and sale of
the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
1318 ORDINANCES Ord. No. 462
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereaf available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and /or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
emplo\Tnent in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industiy and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or othenWse acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And he it further ordained. That the City is
hereby authorized and empowered to issue and sell, at
ORDINANCES 1319
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $4,000,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der teiTns and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And he it further ordained. That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to:
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates ) , under which
the proceeds of the Bonds will be made available to the
1320 ORDINANCES Ord. No. 462
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained. That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
ORDINANCES 1321
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And he it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
1322 ORDINANCES Ord. No. 462
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
ORDINANCES 1323
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And he it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
shovdng of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
1324 ORDINANCES Oid. No. 463
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 463
(Council No. 837)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
HOUSING ASSISTANCE CORPORATION
FOR the purpose of authorizing and empowering Mayor and
City Council of Baltimore to issue and sell, at any time or
from time to time and in one or more series, as limited
obligations of the City and not upon its full faith and
credit, its industrial development revenue bonds, in the
aggregate principal amount not to exceed $10,000,000,
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive pui^ose of financ-
ing the costs, charges, fees and expenses in connection
with the acquisition by Housing Assistance Corporation
its subsidiaries and assigns of certain real property in
Baltimore City together with any improvements located
thereon, and the construction, reconstruction, renova-
tion, and/or rehabilitation of improvements which ^\^ll
be owned by Housing Assistance CoiT)oration its sub-
sidiaries and assigns and used as rental dwelling units,
and to provide long term financing of the land and im-
provements; authorizing the Mayor of the City, on be-
half of the City, to accept the letter of intent dated
October 12, 1981, from Housing Assistance Corporation
its subsidiaries and assigns to the City, making certain
legislative findings; authorizing and empowering the
ORDINANCES 1325
Board of Finance of the City, by a resolution or reso-
lutions adopted prior to the issuance, sale and delivery
of any series of such bonds, to (a) prescribe, among
other things but not limited to, the form, terms, pro-
visions, manner or method of issuing and selling (in-
cluding negotiated as v^ell as competitive bid sale), and
the time or times of issuance, and any and all other
details of such bonds, and (b) do any and all things
necessary, proper or expedient in connection with the
issuance and sale of such bonds; providing that Housing
Assistance Corporation its subsidiaries and assigns shall
agree to submit any plans and specifications to, and to
coordinate with, the Department of Housing and Com-
munity Development in connection with the completion
of such project; providing that such bonds (or antic-
ipation notes issued in anticipation of the issuance of
such bonds) must be issued and sold within one year
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one one year
extension as provided in this Ordinance; authorizing the
issuance of notes in anticipation of the issuance of such
revenue bonds; and generally providing for and deter-
mining various matters and details in connection with
the issuance and sale of such bonds and bond anticipation
notes.
RECITALS
Sub-section (50) of Article H of the Charter of Bal-
timore City (1964 Revision, as amended) (the ''Ena-
bling Law"), empowers the Mayor and City Council of
Baltimore (the ''City") to borrow money to finance un-
dertakings for the accomplishment of any of the pur-
poses, objects and powers of the City and in connection
therewith to issue bonds, notes, or other obligations
(including refunding bonds, notes or other obligations),
all of which shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in con-
nection with the property, facilities, developments and
improvements whose financing is undertaken by the is-
suance of such bonds, notes or other obligations, (H)
the revenues from or aiising in connection with any
contracts, mortgages or other securities purchased or
1326 ORDINANCES Ord. No. 463
otherwise acquired with the proceeds of such bonds, notes
or other obligations, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of such bonds, notes or other obligations,
or (IV) any combination of (I), (II) or (III). The pur-
poses, objects and powers of the City contemplated by
the Enabling Law includes the relief of conditions of
unemplojTiient in Baltimore City, encouraging the in-
crease of industry and a balanced economy in Baltimore
City, promoting economic development in Baltimore City,
and promoting the health, welfare, safety of the resi-
dents of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent") from Housing Assis-
tance Coii3oration its subsidiaries and assigns (the ''Bor-
rower"), pursuant to which the Borrower has requested
the City to participate in the financing of the costs of
the acquisition and/or development by the Borrower
of a certain project in Baltimore City, Maryland (the
"Project"), by issuing and selling the City's industrial
development revenue bonds in the aggregate principal
amount not to exceed $10,000,000, (the ''Bonds"), and
by making the proceeds of the Bonds available to the
Borrower to be used by the Borrower for the sole and
exclusive purpose of financing the costs of the acquisi-
tion and/or development of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition by the Borrower of certain real
property at various locations in Baltimore City, (b) the
renovation, rehabilitation, construction, and/or recon-
struction of any existing improvements for use as rental
dwellings v/hich will be ov/ned and operated by the Bor-
rower, and (c) the long term financing of the land and
improvements. The Borrower anticipates that the units
will be leased to various tenants whose identities are
unknown at this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
"Board") by resolution to determine and set forth the
ORDINANCES 1327
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law^ in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and /or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
emplojTnent in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
1328 ORDINANCES Ord. No. 463
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or othenvise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $10,000,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And he it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And he it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
ORDINANCES 1329
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under v^hich
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutoiy or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or othenvise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Depaiizaent of Housing and Community
1330 ORDINANCES Ord. No. 463
Development for approval, and that the Depaiijnent of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
ORDINANCES 1331
Sec. 8. And he it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the "Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds'* shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
1332 ORDINANCES Ord. No. 463
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within one year from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such one year
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
ORDINANCES 1333
sold for one additional term not to exceed one year
from the date on which the first one year period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the one year period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 464
(Council No. 838)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
WEST FAYETTE LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
$4,800,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclusive
pui-pose of financing the costs, charges, fees and expenses
in connection with the acquisition by West Fayette
Limited Partnership of certain real property in Balti-
more City together with any improvements located there-
1334 ORDINANCES Ord. No. 464
on, and the construction, reconstruction, renovation,
and/or rehabilitation of improvements which will be
owned by West Fayette Limited Partnership and used
as rental dwelling units, and to provide long term fi-
nancing of the land and improvements; authorizing the
Mayor of the City, on behalf of the City, to accept the
letter of intent dated October 12, 1981, from West
Fayette Limited Partnership to the City, making cer-
tain legislative findings; authorizing and empowering
the Board of Finance of the City, by a resolution or
resolutions adopted prior to the issuance, sale and de-
livery of any series of such bonds, to (a) prescribe,
among other things but not limited to, the fonn, terms,
provisions, manner or method of issuing and selling
(including negotiated as well as competitive bid sale),
and the time or times of issuance, and any and all other
details of such bonds, and (b) do any and all things
necessary, proper or expedient in connection with the
issuance and sale of such bonds; providing that West
Fayette Limited Partnership shall agree to submit any
plans and specifications to, and to coordinate with, the
Department of Housing and Community Development
in connection with the completion of such project; pro-
viding that such bonds (or anticipation notes issued in
anticipation of the issuance of such bonds) must be is-
sued and sold within one year from the date this Ordi-
nance is approved by the Mayor, unless the Board of
Finance approves one one year extension as provided
in this Ordinance; authorizing the issuance of notes in
anticipation of the issuance of such revenue bonds; and
generally providing for and deteiTnining various matters
and details in connection with the issuance and sale of
such bonds and bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Bal-
timore City (1964 Revision, as amended) (the ''Ena-
bling Law"), empowers the Mayor and City Council of
Baltimore (the ''City'') to borrow money to finance
undertakings for the accomplishment of any of the
purposes, objects and powers of the City and in con-
nection therewith to issue bonds, notes, or other obli-
ORDINANCES 1335
g-ations (including refunding bonds, notes or other obli-
gations), all of which shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the property, facilities, de-
velopments and improvements whose financing is under-
taken by the issuance of such bonds, notes or other
obligations, (II) the revenues from or arising in con-
nection with any contracts, mortgages or other secur-
ities purchased or otherwise acquired with the proceeds
of such bonds, notes or other obligations, (III) the con-
tracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of such bonds, notes or
other obligations, or (IV) any combination of (I), (II)
or (III). The purposes, objects and powers of the City
contemplated by the Enabling Law includes the relief
of conditions of unemplo\Tnent in Baltimore City, en-
couraging the increase of industry and a balanced econ-
omy in Baltimore City, promoting economic develop-
ment in Baltimore Cit3% and promoting the health, wel-
fare, safety of the residents of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the ''Letter of Intent") from West Fayette
Limited Partnership (the ''Borrower"), pursuant to
which the Borrower has requested the City to participate
in the financing of the costs of the acquisition and/or
development by the Borrower of a certain project in
Baltimore City, Maryland (the "Project"), by issuing
and selling the City's industrial development revenue
bonds in the aggregate principal amount not to exceed
$4,800,000, (the "Bonds"), and by making the proceeds
of the Bonds available to the Borrower to be used by
the Borrower for the sole and exclusive pui'pose of fi-
nancing the costs of the acquisition and/or development
of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist gen-
erally of (a) the acquisition by the Borrower of certain
real property located at 1500-1532 and 1501-1531 West
Fayette Street in the Franklin Square Urban Renewal
Area for use as rental dwellings, (b) the renovation.
1336 ORDINANCES Ord. No. 464
rehabilitation, construction, and/or reconstruction of any-
existing improvements which will be owned and oper-
ated by the Borrower, and (c) the long term financing
of the land and improvements. The Borrower antic-
ipates that the units will be leased to various tenants
whose identities are unknown at this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
"Board") by resolution to determine and set forth the
form, teiTns, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale) , and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper
or expedient in connection with the issuance and sale
of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will sei^e to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
ORDINANCES 1337
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or other^vise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired vnth
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $4,800,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der teiTns and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
1338 ORDINANCES Ord. No. 464
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
ORDINANCES 1339
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further- ordained, That the Borrower
shall agree that:
('a) lit mil submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Depaii;m-ent of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
1340 ORDINANCES Ord. No. 464
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordaiyied, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And he it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such pro\asions
in any such trust agreement or similar agreement as the
ORDINANCES 1341
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
1342 ORDINANCES Ord. No. 465
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. Arid be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within one year from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such one year
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed one year
from the date on which the first one year period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the one year period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
No. 465
(Council No. 839)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
HEPTASOPH LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
ORDINANCES 1343
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $9,000,000,
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive purpose of financ-
ing the costs, charges, fees and expenses in connection
with the acquisition by Heptasoph Limited Partnership
of certain real property in Baltimore City together with
any improvements located thereon, and the construction,
reconstruction, renovation, and/or rehabilitation of im-
provements which will be owned by Heptasoph Limited
Partnership and used as multi-use commercial complex,
and to provide long term financing of the land and im-
provements ; authorizing the Mayor of the City, on behalf
of the City, to accept the letter of intent dated October
12, 1981, from Heptasoph Limited Partnership to the
City, making certain legislative findings; authorizing
and empowering the Board of Finance of the City, by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any series of such bonds, to (a)
prescribe, among other things but not limited to, the
form, terms, provisions, manner or method of issuing and
selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of such bonds, and (b) do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such bonds; providing that
Heptasoph Limited Partnership shall agree to submit
any plans and specifications to, and to coordinate with,
the Department of Housing and Community Develop-
ment in connection with the completion of such project;
providing that such bonds (or anticipation notes issued
in anticipation of the issuance of such bonds) must be
issued and sold within one year from the date this
Ordinance is approved by the Mayor, unless the Board
of Finance approves one one year extension as provided
in this Ordinance; authorizing the issuance of notes in
anticipation of the issuance of such revenue bonds; and
generally providing for and determining various matters
and details in connection with the issuance and sale of
such bonds and bond anticipation notes.
1.S44 ORDINANCES Ord. No. 465
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the "Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the **City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the property, facilities, developments and improve-
ments whose financing is undertaken by the issuance of
such bonds, notes or other obligations, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations, (III) the contracts, mortgages or other se-
curities purchased or otherwise acquired with the pro-
ceeds of such bonds, notes or other obligations, or (IV)
any combination of (I), (II) or (III). The purposes, ob-
jects and powers of the City contemplated by the En-
abling Law includes the relief of conditions of unem-
ployment in Baltimore City, encouraging the increase of
industry and a balanced economy in Baltimore City,
promoting economic development in Baltimore City, and
promoting the health, welfare, safety of the residents of
Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the ''Letter of Intent") from Heptasoph
Limited Partnership (the ''Borrower"), pursuant to
which the Borrower has requested the City to participate
in the financing of the costs of the acquisition and/or
development by the Borrower of a certain project in
Baltimore City, Maryland (the "Project"), by issuing
and selling the City's industrial development revenue
bonds in the aggregate principal amount not to exceed
$9,000,000, (the "Bonds"), and by making the proceeds
of the Bonds available to the Borrower to be used by
the Borrower for the sole and exclusive purpose of fi-
ORDINANCES 1345
nancing the costs of the acquisition and/or development
of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition by the Borrower of certain real
property located in the unit block of West Preston Street
in the Mount Vernon Historic District for use as a
multiple-use commercial complex, (b) the renovation,
rehabilitation, construction, and/or reconstruction of any
existing improvements which will be owned ond op-
erated by the Borrower, and (c) the long term financing
of the land and improvements.
The Enabling Law provides that the City may author-
ize and empower the Board of Penance of the City (the
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance
and sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
1346 ORDINANCES Ord. No. 465
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industiy and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or other^vise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $9,000,000,
subject to the provisions of this Ordinance. The pix>ceeds
of the Bonds will be made available to the Borrower un-
der teiTns and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
so^e and exclusive purpose of financing the costs of the
acquisition and /or development of the Project.
Sec. 3. And he it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
ORDINANCES 1347
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as comx)etitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/ or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
1348 ORDINANCES Ord. No. 465
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or othei-^vise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further or darned, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and deliveiy of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
ORDINANCES 1349
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That th^ authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the "Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
1350 ORDINANCES Ord. No. 465
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not vnthin the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ORDINANCES 1351
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within one year from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such one year
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed one year
from the date on which the first one year period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the one year period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority pro\aded in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
1352 ORDINANCES Ord. No. 466
No. 466
(Council No. 841)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
FRANKLIN SQUARE LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $3,000,000
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive purpose of financ-
ing the costs, charges, fees and expenses in connection
with the acquisition by Franklin Square Limited Part-
nership of certain real property being the square block
bounded by Carey, Lexington, Calhoun, and Saratoga
Streets in the Franklin Square Urban Renewal Area in
Baltimore City, together with any improvements located
thereon, and the construction, reconstruction, renovation,
and/or rehabilitation of improvements which will be
owned by Franklin Square Limited Partnership and used
as rental dw^elling units, and to provide long term fi-
nancing of the land and improvements; authorizing the
Mayor of the City, on behalf of the City, to accept the
letter of intent dated October 12, 1981, from Franklin
Square Limited Partnership to the City, making certain
legislative findings; authorizing and empowering the
Board of Finance of the City, by a resolution or resolu-
tions adopted prior to the issuance, sale and delivery of
any series of such bonds, to (a) prescribe, among other
things but not limited to, the form, terms, provisions,
manner or method of issuing and selling (including
negotiated as well as competitive bid sale), and the time
or times of issuance, and any and all other details of
such bonds, and (b) do any and all things necessary,
proper or expedient in connection with the issuance and
sale of such bonds; providing that Franklin Square
Limited Partnership shall agi-ee to submit any plans and
ORDINANCES 1353
specifications to, and to coordinate with, the Department
of Housing and Community Development in connection
with the completion of such project; providing that such
bonds (or anticipation notes issued in anticipation of the
issuance of such bonds) must be issued and sold within
one year from the date this Ordinance is approved by
the Mayor, unless the Board of Finance approves one one
year extension as provided in this Ordinance; author-
izing the issuance of notes in anticipation of the issuance
of such revenue bonds; and generally providing for and
determining various matters and details in connection
with the issuance and sale of such bonds and bond antici-
pation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the ''Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the "City") to borrow money to finance under-
takings for the accomplishment of any of the puii^oses,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the property, facilities, developments and improve-
ments whose financing is undertaken by the issuance of
such bonds, notes or other obligations, (II) the revenues
from or arising in connection v^ith any contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations, (III) the contracts, mortgages or other se-
curities purchased or otherwise acquired vdth the pro-
ceeds of such bonds, notes or other obligations, or (IV)
any combination of (I), (II) or (III). The purposes,
objects and powers of the City contemplated by the En-
abling Law includes the relief of conditions of unemploy-
ment in Baltimore City, encouraging the increase of
industry and a balanced economy in Baltimore City,
promoting economic development in Baltimore City, and
promoting the health, welfare, safety of the residents of
Baltimore City.
1354 ORDINANCES Ord. No. 466
The City has received a letter of intent dated October
12, 1981, (the ''Letter of Intent") from Franklin Square
Limited Partnership (the ''Borrower"), pursuant to
which the Borrower has requested the City to participate
in the financing of the costs of the acquisition and/or
development by the Borrower of a certain project in
Baltimore City, Maryland (the "Project"), by issuing
and selling the City's industrial development revenue
bonds in the aggregate principal amount not to exceed
$3,000,000 (the "Bonds"), and by making the proceeds
of the Bonds available to the Borrower to be used by the
Borrower for the sole and exclusive purpose of financ-
ing the costs of the acquisition and/or development of
the Project by the Borrower.
The Project, which is an "undertaking" which will ac-
complish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist gener-
ally of (a) the acquisition by the Borrower of certain
real property being the square block bounded by Carey,
Lexington, (Calhoun, and Saratoga Streets in the Frank-
lin Square Urban Renewal Area for use as rental dwell-
ings, (b) the renovation, rehabilitation, construction,
and/or reconstruction, of any existing improvements
which will be owned and operated by the Borrower, and
(c) the long term financing of the land and improve-
ments. The Borrower anticipates that the units will be
leased to various tenants whose identities are unknown
at this time.
The Borrower, through the City, has applied for an
Urban Development Action Grant, the proceeds of which
will be used to pay a portion of the costs of the acquisi-
tion and development of the Project.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
ORDINANCES 1355
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired ^vi\\\ the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
1356 ORDINANCES Ord. No. 466
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $3,000,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der teiTQs and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And be it further ordained. That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law% the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agi'eement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
ORDINANCES 1357
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under w^hich
the proceeds of the Bonds v^ill be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that :
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
1358 ORDINANCES Ord. No. 466
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. A7id be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the ]\Iayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his 'her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and deliveiy of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And he it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
ORDINANCES 1359
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as v^ell as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
1360 ORDINANCES Ord. No. 466
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within one year from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such one year
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed one year
from the date on which the first one year period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the one year period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
ORDINANCES 1361
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 467
(Council No. 842)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
BARCLAY-GREENMOUNT NSA
LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $6,500,000
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive purpose of financ-
ing the costs, charges, fees and expenses in connection
with the acquisition by Barclay-Greenmount NSA Lim-
ited Partnership of certain real property in Baltimore
City together with any improvements located thereon,
and the construction, reconstruction, renovation, and/or
rehabilitation of improvements which will be owned by
Barclay-Greenmount NSA Limited Partnership and used
as rental dwelling units, and to provide long term fi-
nancing of the land and improvements; authorizing the
Mayor of the City, on behalf of the City, to accept the
1362 ORDINANCES Ord. No. 467
letter of intent dated October 12, 1981, from Barclay-
Greenmount NSA Limited Partnership to the City, mak-
ing certain legislative findings; authorizing and empow-
ering the Board of Finance of the City, by a resolution
or resolutions adopted prior to the issuance, sale and
delivery of any series of such bonds, to (a) prescribe,
among other things but not limited to, the form, terms,
provisions, manner or method of issuing and selling (in-
cluding negotiated as well as competitive bid sale), and
the time or times of issuance, and any and all other
details of such bonds, and (b) do any and all things
necessary, proper or expedient in connection with the
issuance and sale of such bonds ; providing that Barclay-
Greenmount NSA Limited Partnership shall agree to
submit any plans and specifications to, and to coordinate
with, the Department of Housing and Community De-
velopment in connection with the completion of such
project; providing that such bonds (or anticipation notes
issued in anticipation of the issuance of such bonds)
must be issued and sold within six months from the date
this Ordinance is approved by the Mayor, unless the
Board of Finance approves one six month extension as
provided in this Ordinance; authorizing the issuance of
notes in anticipation of the issuance of such revenue
bonds; and generally providing for and determining
various matters and details in connection with the issu-
ance and sale of such bonds and bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the "Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the "City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the property, facilities, developments and improve-
ments whose financing is undertaken by the issuance of
such bonds, notes or other obligations, (II) the revenues
ORDINANCES 1363
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of such bonds, notes or other obliga-
tions, (III) the contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of
such bonds, notes or other obligations, or (IV) any com-
bination of (I), (II) or (III). The purposes, objects and
powers of the City contemplated by the Enabling Law
includes the relief of conditions of unemployment in Bal-
timore City, encouraging the increase of industry and a
balanced economy in Baltimore City, promoting economic
development in Baltimore City, and promoting the health,
welfare, safety of the residents of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent'^) from Barclay-Green-
mount NSA Limited Partnership (the "Borrower"),
pursuant to which the Borrower has requested the City
to participate in the financing of the costs of the acqui-
sition and/or development by the Borrower of a certain
project in Baltimore City, Maryland (the "Project"), by
issuing and selling the City's industrial development
revenue bonds in the aggregate principal amount not to
exceed $6,500,000 (the "Bonds"), and by making the
proceeds of the Bonds available to the Borrower to be
used by the Borrower for the sole and exclusive purpose
of financing the costs of the acquisition and/or develop-
ment of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition by the Borrower of certain real
property located in the Barclay and Greenmount NSA
Urban Renewal Areas, (b) the renovation, rehabilitation,
construction, and/or reconstruction of any existing im-
provements which will be owned and operated by the
Borrower, and (c) the long term financing of the land
and improvements. The Borrower anticipates that the
units will be leased to various tenants whose identities
are unkno^vn at this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
13G4 ORDINANCES Ord. No. 467
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing and
selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper
or expedient in connection with the issuance and sale
of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW :
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and /or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and /or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
emplojTnent in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Ai-ticle XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
ORDINANCES 1365
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $6,500,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der teiTQs and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And he it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof ;
1366 ORDINANCES Ord. No. 467
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Lav^, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under v^hich
the proceeds of the Bonds v^ill be made available to the
Borrov^er to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection v^ith the issuance, sale and delivery
of the Bonds.
Sec. 5. And he it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maiyland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or othenvise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. A72d be it further ordai7ied, That the Borrower
shall agree that:
ORDINANCES 1367
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Depai-tment of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work wdth the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such oflicer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
1368 ORDINANCES Ord. No. 467
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And he it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And he it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
v^here appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as v^ell as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
ORDINANCES 1369
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may l3e, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
1370 ORDINANCES Ord. No. 468
of the City; provided, however, that the Board, after a
shov^ing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. A7id be it further ordained, That this Ordinance
shall take eflfect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 468
(Council No. 843)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
HOLLINS TOWNHOUSES LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
as limited obligations of the City and not upon its full
faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
$2,000,000, pursuant to the provisions of Sub-section
(50) of Article II of the Charter of Baltimore City
ORDINANCES 1371
(1964 Revision, as amended), for the sole and exclusive
purpose of financing the costs, charges, fees and ex-
penses in connection with the acquisition by Hollins
Townhouses Limited Partnership of certain real prop-
erty in the 1000, 1100, and 1300 blocks of Hollins Street,
the 1000 block of Booth Street, and the 900 block of
Lemmon Street in the Poppleton and Franklin Square
Urban Renewal Areas, in Baltimore City, together with
any improvements located thereon, and the construc-
tion, reconstruction, renovation, and/or rehabilitation
of improvements which will be owned by Hollins Town-
houses Limited Partnership and used as rental dwell-
ing units, and to provide long term financing of the
land and improvements; authorizing the Mayor of the
City, on behalf of the City, to accept the letter of intent
dated October 12, 1981, from Hollins Townhouses Lim-
ited Partnership to the City, making certain legislative
findings; authorizing and empowering the Board of Fi-
nance of the City, by a resolution or resolutions adopted
prior to the issuance, sale and delivery of any series
of such bonds, to (a) prescribe, among other things
but not limited to, the form, terms, provisions, manner
or method of issuing and selling (including negotiated
as well as competitive bid sale), and the time or times
of issuance, and any and all other details of such bonds,
and (b) do any and all things necessary, proper or
expedient in connection with the issuance and sale of
such bonds; providing that Hollins Townhouses Limited
Partnership shall agree to submit any plans and speci-
fications to, and to coordinate with, the Department
of Housing and Community Development in connection
with the completion of such project; providing that
such bonds (or anticipation notes issued in anticipation
of the issuance of such bonds) must be issued and
sold within six months from the date this Ordinance
is approved by the Mayor, unless the Board of Finance
approves one six month extension as provided in this
Ordinance; authorizing the issuance of notes in antic-
ipation of the issuance of such revenue bonds; and
generally providing for and determining various mat-
ters and details in connection with the issuance and sale
of such bonds and bond anticipation notes.
1372 ORDINANCES Ord. No. 468
RECITALS
Sub-section (50) of Article II of the Charter of Bal-
timore City (1964 Revision, as amended) (the "Ena-
bling Law"), empowers the Mayor and City Council of
Baltimore (the ''City") to borrow money to finance
undertakings for the accomplishment of any of the
purposes, objects and powers of the City and in con-
nection therewith to issue bonds, notes, or other obliga-
tions (including refunding bonds, notes or other obliga-
tions), all of which shall be fully negotiable, payable,
as to both principal and interest, solely from and se-
cured solely by a pledge of (I) the revenues from or
arising in connection with the property, facilities, de-
velopments and improvements whose financing is under-
taken by the issuance of such bonds, notes or other
obligations, (II) the revenues from or arising in con-
nection with any contracts, mortgages or other secur-
ities purchased or otherwise acquired with the proceeds
of such bonds, notes or other obligations, (III) the
contracts, mortgages or other securities purchased or
otherwise acquired with the proceeds of such bonds,
notes or other obligations, or (IV) any combination of
(I), (II) or (III). The purposes, objects and powers
of the City contemplated by the Enabling Law includes
the relief of conditions of unemplo^Tnent in Baltimore
City, encouraging the increase of industry and a balanced
economy in Baltimore City, promoting economic develop-
ment in Baltimore City, and promoting the health, wel-
fare, safety of the residents of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the ''Letter of Intent") from Hollins Town-
houses Limited Partnership (the "Borrower"), pursuant
to which the Borrower has requested the City to par-
ticipate in the financing of the costs of the acquisition
and/or development by the Borrower of a certain proj-
ect in Baltimore City, Maryland (the "Project"), by
issuing and selling the City's industrial development
revenue bonds in the aggregate principal amount not
to exceed $2,000,000, (the "Bonds"), and by making
the proceeds of the Bonds available to the Borrower to
be used by the Borrower for the sole and exclusive pur-
ORDINANCES 1373
pose of financing the costs of the acquisition and/or
development of the Project by the Borrower.
The Project, which is an ''undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist gen-
erally of (a) the acquisition by the Borrower of certain
real property in the 1000, 1100, and 1300 blocks of Rol-
lins Street, the 1000 block of Booth Street, and the 900
block of Lemmon Street in the Poppleton and Franklin
Square Urban Renewal Areas for use as rental dwell-
ings, (b) the renovation, rehabilitation, construction,
and/or reconstruction, of any existing improvements
which will be owned and operated by the Borrower, and
(c) the long term financing of the land and improve-
ments. The 'Borrower anticipates that the units will be
leased to various tenants whose identities are unknown
at this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
''Board") by resolution to deteiTnine and set forth the
foiTn, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale) , and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper
or expedient in connection with the issuance and sale of
the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
1374 ORDINANCES Ord. No. 468
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and /or development as pix)vided in this ordi-
nance will sei've to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economv in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $2,000,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der teiTns and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
ORDINANCES 1375
Sec. 3. And he it further ordoAned, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And he it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
1376 ORDINANCES Ord. No. 468
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And he it fuy^ther ordained, That the Borrower
shall agree that :
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work ^\ath the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And he it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
docimients as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
ORDINANCES 1377
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And he it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the "Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
1378 ORDINANCES Ord. No. 468
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (^vithout limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the efl^ectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
ORDINANCES 1379
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance v^ould have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to v^hich this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
1380 ORDINANCES Ord. No. 469
No. 469
(Council No. 844)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
AMITY RAMBLE LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
as limited obligations of the City and not upon its
full faith and credit, its industrial development revenue
bonds, in the aggregate piincipal amount not to exceed
$2,100,000, pursuant to the provisions of Sub-section
(50) of Ai-ticle II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclu-
sive purpose of financing the costs, charges, fees and
expenses in connection with the acquisition by Amity
Ramble Limited Partnership of certain real property
located in Baltimore City together with any improve-
ments located thereon, and the construction, reconstruc-
tion, renovation, and/or rehabilitation of improvements
which vnl\ be o^\Tled by Amity Ramble Limited Partner-
ship and used as rental dwelling units for families and
the elderly, and to provide long term financing of the
land and improvements; authorizing the Mayor of the
City, on behalf of the City, to accept the letter of intent
dated October 12, 1981, from Amity Ramble Limited
Partnership to the City, making certain legislative find-
ings ; authorizing and empowering the Board of Finance
of the City, by a resolution or resolutions adopted prior
to the issuance, sale and delivery of any series of such
bonds, to (a) prescribe, among other things but not
limited to, the form, terms, provisions, manner or method
of issuing and selling (including negotiated as well as
competitive bid sale), and the time or times of issuance,
and any and all other details of such bonds, and (b)
do any and all things necessary, proper or expedient
in connection with the issuance and sale of such bonds;
providing that Amity Ramble Limited Partnership shall
agree to submit any plans and specifications to, and to
coordinate ^\ath, the Department of Housing and Com-
ORDINANCES 1381
munity Development in connection with the completion
of such project; providing that such bonds (or antici-
pation notes issued in anticipation of the issuance of
such bonds) must be issued and sold within six months
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one six month
extension as provided in this Ordinance; authorizing the
issuance of notes in anticipation of the issuance of such
revenue bonds; and generally providing for and deter-
mining various matters and details in connection with
the issuance and sale of such bonds and bond anticipa-
tion notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the ''Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the ''City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in con-
nection Avith the property, facilities, developments and
improvements whose financing is undertaken by the
issuance of such bonds, notes or other obligations, (II)
the revenues from or arising in connection with any
contracts, mortgages or other securities purchased or
otherwise acquired \vith the proceeds of such bonds,
notes or other obligations, (III) the contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations, or (IV) any combination of (I), (II) or
(III). The purposes, objects and powers of the City
contemplated by the Enabling Law includes the relief
of conditions of unemployment in Baltimore City, en-
couraging the increase of industry and a balanced econ-
omy in Baltimore City, promoting economic develop-
ment in Baltimore City, and promoting the health, wel-
fare, safety of the residents of Baltimore City.
1382 ORDINANCES Ord. No. 469
The City has received a letter of intent dated Octo-
ber 12, 1981, (the ''Letter of Intent") from Amity
Ramble Limited Partnership (the "Borrower"), pursuant
to which the Borrower has requested the City to par-
ticipate in the financing of the costs of the acquisition
and/or development by the Borrower of a certain project
in Baltimore City, Maryland (the "Project"), by issuing
and selling- the City's industrial development revenue
bonds in the aggregate principal amount not to exceed
$2,100,000, (the "Bonds"), and by making the proceeds
of the Bonds available to the Borrower to be used by
the Borrower for the sole and exclusive purpose of fi-
nancing the costs of the acquisition and/or development
of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the pui-poses, objects and powers of the
City as mentioned in the Enabling Law, will consist
generally of (a) the acquisition by the Borrower of
certain real property located at various sites in the
Mount Clare Urban Renewal Area for use as rental
dwellings, (b) the renovation, rehabilitation, construc-
tion, and/or reconstruction of any existing improvements
which will be owned and operated by the Borrower, and
(c) the long term financing of the land and improve-
ments. The Borrower anticipates that the units will be
leased to various tenants whose identities are unknown
at this time.
The Enabling Law provides that the City may au-
thorize and empower the Board of Finance of the City
(the "Board") by resolution to determine and set forth
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as w^ell as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection \\dth the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
ORDINANCES 1383
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or othen\ase acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And he it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
1384 ORDINANCES Ord. No. 469
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggreg-ate principal amount not to exceed $2,100,000,
subject to the provisions of this Ordinance. The pi-oceeds
of the Bonds will be made available to the Borrower un-
der teiTns and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And he it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agi'ee-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds ^\i\\ be made available to the
ORDINANCES 1385
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or othei^vise acquired
with the proceeds of the Bonds, or (IV) any combdnation
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. A7id be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work \\ith the design
advisoiy group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained. That any and all of
the Bonds shall be executed in the name of the City and
1386 ORDINANCES Ord. No. 469
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and deliveiT of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
ORDINANCES 1387
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as v^ell as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
1388 ORDINANCES Ord. No. 469
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that; neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
ORDINANCES 1389
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 470
(Council No. 845)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
COLD SPRING TERRACE LIMITED PARTNERSHIP
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $6,000,000,
pursuant to the pro\asions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive purpose of financing
the costs, charges, fees and expenses in connection with
the acquisition by Cold Spring Terrace Limited Part-
nership of certain real property in Baltimore City to-
gether with any improvements located thereon, and the
construction, reconstruction, renovation, and/or reha-
bilitation of improvements which will be owned by Cold
Spring Terrace Limited Partnership and used as rental
dwelling units, and to provide long term financing of
the land and improvements; authorizing the Mayor of
the City, on behalf of the City, to accept the letter of
intent dated October 12, 1981, from Cold Spring Terrace
Limited Partnership to the City, making certain legis-
lative findings; authorizing and empowering the Board
1390 ORDINANCES Ord. No. 470
of Finance of the City, by a resolution or resolutions
adopted prior to the issuance, sale and delivery of any
series of such bonds, to (a) prescribe, among other
things but not limited to, the form, terms, provisions,
manner or method of issuing and selling (including
negotiated as well as competitive bid sale), and the time
or times of issuance, and any and all other details of
such bonds, and (b) do any and all things necessary,
proper or expedient in connection with the issuance and
sale of such bonds; providing that Cold Spring Terrace
Limited Partnership shall agree to submit any plans and
specifications to, and to coordinate with, the Department
of Housing and Community Development in connection
with the completion of such project; providing that such
bonds (or anticipation notes issued in anticipation of the
issuance of such bonds) must be issued and sold "within
six months from the date this Ordinance is approved by
the Maj^or, unless the Board of Finance approves one
six month extension as provided in this Ordinance; au-
thorizing the issuance of notes in anticipation of the
issuance of such revenue bonds ; and generally providing
for and determining various matters and details in con-
nection with the issuance and sale of such bonds and
bond anticipation notes,
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the "Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the "City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the property, facilities, developments and improve-
ments whose financing is undertaken by the issuance of
such bonds, notes or other obligations, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise ac-
ORDINANCES 1391
quired with the proceeds of such bonds, notes or other
obligations, (III) the contracts, mortgages or other se-
curities purchased or otherwise acquired with the pro-
ceeds of such bonds, notes or other obligations, or (IV)
any combination of (I), (II) or (III). The purposes,
objects and powers of the City contemplated by the
Enabling Law includes the relief of conditions of unem-
ployment in Baltimore City, encouraging the increase of
industry and a balanced economy in Baltimore City,
promoting economic development in Baltimore City, and
promoting the health, welfare, safety of the residents of
Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent*') from Cold Spring
Terrace Limited Partnership (the ^'Borrower"), pur-
suant to which the Borrower has requested the City to
participate in the financing of the costs of the acquisi-
tion and/or development by the Borrower of a certain
project in Baltimore City, Maryland (the "Project"), by
issuing and selling the City's industrial development
revenue bonds in the aggregate principal amount not to
exceed $6,000,000, (the "Bonds"), and by making the
proceeds of the Bonds available to the Borrower to be
used by the Borrower for the sole and exclusive purpose
of financing the costs of the acquisition and/or develop-
ment of the Project by the Borrower.
The Project, which is an "undertaking" which vnll ac-
complish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the acquisition by the Borrower of certain real
property located in the Park Heights Urban Renewal
Area at Coldspring Lane and Edgecomb Circle North,
(b) the renovation, rehabilitation, construction, and/or
reconstruction of any existing improvements consisting
of rental dwellings which will be owned and operated
by the Borrower, (c) the long term financing of the land
and improvements. The Borrower anticipates that the
units will be leased to various tenants whose identities
are unknown at this time.
The Borrower, through the City, has applied for an
Urban Development Action Grant, the proceeds of which
1392 ORDINANCES Ord. No. 470
will be used to pay a portion of the costs of the acquisi-
tion and development of the Project.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper
or expedient in connection with the issuance and sale
of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and /or development of the Project will facilitate and ex-
pedite the acquisition and /or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
emplojmient in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industiy and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
ORDINANCES 1393
tutional, statutory or charter provision limiting or restrict-
ing- the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obH-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection v^ith any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $6,000,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to:
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
1394 ORDINANCES Ord. No. 470
and selling (including negotiated as well as comx>etitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotia^ble, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
ORDINANCES 1395
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
1396 ORDINANCES Ord. No. 470
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And he it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the "Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
v^^here appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as v^ell as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
ORDINANCES 1397
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
1398 ORDINANCES Ord. No. 471
Bonds must be issued and sold within six months from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months
from the date on which the first six month period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the six month period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 471
(Council No. 846)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
FRANKLIN SQUARE ASSOCIATES
FOR the pui-pose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series,
as limited obligations of the City and not upon its
full faith and credit, its industrial development revenue
bonds, in the aggregate principal amount not to exceed
§3,500,000 pursuant to the provisions of Sub-section
ORDINANCES 1399
(50) of Article II of the Charter of Baltimore City
(1964 Revision, as amended), for the sole and exclu-
sive purpose of financing the costs, charges, fees and
expenses in connection with the acquisition by Franklin
Square Associates of certain real property in Baltimore
City together with any improvements located thereon,
and the construction, reconstruction, renovation, and/or
rehabilitation of improvements which will be owned by
Franklin Square Associates and used as rental dwelling
units, and to provide long term financing of the land
and improvements; authorizing the Mayor of the City,
on behalf of the City, to accept the letter of intent dated
October 12, 1981, from Franklin Square Associates to
the City, making certain legislative findings ; authorizing
and empowering the Board of Finance of the City, by
a resolution or resolutions adopted prior to the issuance,
sale and delivery of any series of such bonds, to (a)
prescribe, among other things but not limited to, the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as com]>etitive
bid sale), and the time or times of issuance, and any
and all other details of such bonds, and (b) do any
and all things necessary, proper or exi^edient in connec-
tion with the issuance and sale of such bonds; pro-
viding that Franklin Square Associates shall agree to
submit any plans and specifications to, and to coordi-
nate with, the Department of Housing and Community
Development in connection with the completion of such
project; providing that such bonds (or anticipation
notes issued in anticipation of the issuance of such
bonds) must be issued and sold within one year
from the date this Ordinance is approved by the Mayor,
unless the Board of Finance approves one one year
extension as provided in this Ordinance ; authorizing the
issuance of notes in anticipation of the issuance of such
revenue bonds; and generally providing for and deter-
mining various matters and details in connection ^\^th
the issuance and sale of such bonds and bond anticipa-
tion notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the "Enabling
1400 ORDINANCES Ord. No. 471
Law"), empowers the Mayor and City Council of Balti-
more (the "City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all
of which shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely
by a pledge of (I) the revenues from or arising in con-
nection with the property, facilities, developments and
improvements whose financing is undertaken by the
issuance of such bonds, notes or other obligations, (II)
the revenues from or arising in connection \Wth any
contracts, mortgages or other securities purchased or
otherwise acquired ^^^th the proceeds of such bonds,
notes or other obligations, (III) the contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations, or (IV) any combination of (I), (II) or
(III). The purposes, objects and powers of the City
contemplated by the Enabling Law includes the relief
of conditions of unemployment in Baltimore City, en-
couraging the increase of industry and a balanced econ-
omy in Baltimore City, promoting economic develop-
ment in Baltimore City, and promoting the health, wel-
fare, safety of the residents of Baltimore City.
The City has received a letter of intent dated Octo-
'ber 12, 1981, (the "Letter of Intent") from Franklin
Square Associates (the "Borrower"), pursuant to which
the Borrower has requested the City to participate in the
financing of the costs of the acquisition and/or develop-
ment by the Borrower of a certain project in Baltimore
City, Maryland (the "Project"), by issuing and selling
the City's industrial development revenue bonds in the
aggregate principal amount not to exceed $3,500,000
(the "Bonds"), and by making the proceeds of the
Bonds available to the Borrower to be used by the
Borrower for the sole and exclusive purpose of financing
the costs of the acquisition and/or development of the
Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
ORDINANCES 1401
as mentioned in the Enabling Law, will consist gen-
erally of (a) the acquisition by the Borrower of certain
real property known as School 100 in the Franklin
Square Urban Renewal Area, (b) the renovation, re-
habilitation, construction, and/or reconstruction of any
existing improvements which will be owned and operated
by the BoiTower, and (c) the long term financing of the
land and improvements. The Borrower anticipates that
the units will be leased to various tenants whose identities
are unknown at this time.
The Enabling Law provides that the City may au-
thorize and empower the Board of Finance of the City
(the "Board") by resolution to determine and set forth
the foiTn, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any
and all other details of the Bonds and the issuance and
sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
emplojTnent in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
1402 ORDINANCES Ord. No. 471
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maiyland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, m.ortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $3,500,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds \v\\\ be made available to the Borrower un-
der terms and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive puiT30se of financing the costs of the
acquisition and /or development of the Project.
Sec. 3. And he it further ordained. That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
ORDINANCES 1403
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(cj approve the terms and conditions, including but not
Hmited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And be it further ordained, That any and all of
the Bonds shall not be general obligations of tiie City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
1404 ORDINANCES Ord. No. 471
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise acquired
vnth the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And he it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And he it further ordained. That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
ORDINANCES 1405
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the "Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds** shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
1406 ORDINANCES Ord. No. 471
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes ;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained. That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
ORDINANCES 1407
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And be it further^ ordained, That either the
bonds or bond anticipation notes issued pursuant to Sec-
tion 9 of this Ordinance in anticipation of the issuance of
the Bonds must be issued and sold within one year from
the date on which this Ordinance is approved by the ]Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such one year
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed one year from
the date on which the first one year period expired. The
Board, in its sole discretion, and without action by the
City Council, shall determine the sufficiency, or lack there-
of, of the reasons presented for any requested extension
of the one year period. To the extent that neither the
Bonds or such bond anticipation notes are issued and sold
within twelve months from the date on which this Ordi-
nance is approved by the Mayor of the City, the authority
provided in this Ordinance for the City to issue and sell
the Bonds and such bond anticipation notes shall expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
1408 ORDINANCES Ord. No. 472
No. 472
(Council No. 847)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
MARKET CENTER DEVELOPMENT
CORPORATION OF BALTIMORE
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $10,000,000,
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive purpose of financing
the costs, charges, fees and expenses in connection with
the acquisition by Market Center Development Corpora-
tion of Baltimore its subsidiaries or assigns of certain
real property in Baltimore City together with any im-
provements located thereon, and the construction, re-
construction, renovation, and/or rehabilitation of im-
provements which will be owned by Market Center
Development Corporation of Baltimore its subsidiaries
or assigns for multiple commercial uses, and to provide
long term financing of the land and improvements; au-
thorizing the Mayor of the City, on behalf of the City,
to accept the letter of intent dated October 12, 1981,
from Market Center Development Corporation of Balti-
more its subsidiaries or assigns to the City, making
certain legislative findings ; authorizing and empowering
the Board of Finance of the City, by a resolution or
resolutions adopted prior to the issuance, sale and de-
livery of any series of such bonds, to (a) prescribe,
among other things but not limited to, the form, terms,
provisions, manner or method of issuing and selling
(including negotiated as well as competitive bid sale),
and the time or times of issuance, and any and all other
details of such bonds, and (b) do any and all things
necessary, proper or expedient in connection with the
issuance and sale of such bonds; providing that Market
ORDINANCES 1409
Center Development Corporation of Baltimore, its sub-
sidiaries or assigns shall agree to submit any plans
and specifications to, and to coordinate with, the De-
partment of Housing and Community Development in
connection with the completion of such project; provid-
ing that such bonds (or anticipation notes issued in an-
ticipation of the issuance of such bonds) must be issued
and sold within one year from the date this Ordinance
is approved by the Mayor, unless the Board of Finance
approves one one year extension as provided in this
Ordinance; authorizing the issuance of notes in antici-
pation of the issuance of such revenue bonds; and gen-
erally providing for and determining various matters
and details in connection with the issuance and sale of
such bonds and bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the "Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the *'City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the property, facilities, developments and improve-
ments whose financing is undertaken by the issuance of
such bonds, notes or other obligations, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations, (III) the contracts, mortgages or other se-
curities purchased or otherwise acquired with the pro-
ceeds of such bonds, notes or other obligations, or (IV)
any combination of (I), (II) or (III). The purposes,
objects and powers of the City contemplated by the En-
abling Law includes the relief of conditions of unem-
ployment in Baltimore City, encouraging the increase of
industry and a balanced economy in Baltimore City,
promoting economic development in Baltimore City, and
1410 ORDINANCES Ord. No. 472
promoting the health, welfare, safety of the residents of
Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the ^'Letter of Intent") from Market Center
Development Corporation of Baltimore its subsidiaries
or assigns (the "Borrower"), pursuant to which the
Borrower has requested the City to participate in the
financing of the costs of the acquisition and/or develop-
ment by the Borrower of a certain project in Baltimore
City, Maryland (the 'Troject"), by issuing and selling
the City's industrial development revenue bonds in the
aggregate principal amount not to exceed $10,000,000,
(the ''Bonds"), and by making the proceeds of the Bonds
available to the Borrower to be used by the Borrower
for the sole and exclusive purpose of financing the costs
of the acquisition and/or development of the Project
by the Borrower.
The Project, which is an ''undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist gener-
ally of (a) the acquisition by the Borrower of certain
real property being the block bounded by Druid Hill
Avenue, Howard Street, Franklin Street, and Eutaw
Street in the Retail District for use as a multi-use com-
mercial complex with rental dwelling units, (b) the
renovation, rehabilitation, construction, and/or recon-
struction of any existing improvements which will be
owned and operated by the Borrower, and (c) the long
term financing of the land and improvements. The Bor-
rower anticipates that the units will be leased to various
tenants whose identities are unknown at this time.
The Borrower, through the City intends to apply for
an Urban Development Action Grant, the proceeds of
which will be used to pay a portion of the costs of the
acquisition and development of the Project.
The Enabling Law provides that the City may au-
thorize and empower the Board of Finance of the City
(the "Board") by resolution to determine and set forth
the form, terms, provisions, manner or method of issu-
ing and selling (including negotiated as well as competi-
tive bid sale), and the time or times of issuance, and
ORDINANCES 1411
any and all other details of the Bonds and the issuance
and sale thereof, and to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Law,
it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition
and/or development of the Project will facilitate and ex-
pedite the acquisition and/or development of the Project
by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general
obligations of the City and shall not be a pledge of or
involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other consti-
tutional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obliga-
tions of the City. All of the Bonds shall be limited obli-
gations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising
in connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
1412 ORDINANCES Ord. No. 472
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with
the proceeds of the Bonds, or (IV) any combination of
(I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $10,000,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower un-
der teiTns and conditions approved by the Board and set
forth in a Resolution, and used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project.
Sec. 3. A7id be it further ordained. That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to
further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolution adopted prior to
the issuance, sale and delivery of any of the Bonds, to:
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ORDINANCES 1413
ment, as provided in the Enabling Law, and (iii) such
provisions in any such trust agreement or similar agree-
ment as the Board may deem reasonable and proper for
the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the acquisition and/or
development of the Project; and
(d)' do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 5. And he it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City, and shall be fully negotiable, pay-
able, as to both principal and interest, solely from and
secured solely by a pledge of (I) the revenues from or
arising in connection with the Project, (II) the revenues
from or arising in connection with any contracts, moil-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, (III) the contracts, mort-
gages or other securities purchased or otherwise acquired
with the proceeds of the Bonds, or (IV) any combination
of (I), (II) or (III), all as the Board may approve by a
resolution or resolutions adopted prior to the issuance, sale
and delivery of any of the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that:
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
1414 ORDINANCES Ord. No. 472
Housing and Community Development may refuse approval
of any plans and specifications for aesthetic or functional
reasons; and
(b) it and its developers will work \\dth the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and
on its behalf by the Mayor of the City, by his manual or
facsimile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and deliveiy of the Bonds shall be exe-
cuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there
shall be impressed or otherwise reproduced thereon and
attested by the Custodian or Alternate Custodian of the
City Seal by his/her manual signature. In case any officer
whose signature or a facsimile of whose signature shall
appear on the Bonds or any of the aforesaid documents
shall cease to be such officer before the delivery of the
Bonds or any of the other aforesaid documents, such sig-
natures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City,
the Director of Finance of the City, the Custodian and
the Alternate Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do
all such acts and things and execute such documents and
certificates as the Board may determine by resolution to
be necessary to carry out and comply with the provisions
hereof.
ORDINANCES 1415
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of
the City or by such other appropriate official of the City
as may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to
include the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code
of Maryland (1976 Replacement Volume and 1980 Cumu-
lative Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the "Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as v^ell as competitive
bid sale), and the time or times of issuance, and any and
all other details of such bond anticipation notes and the
issuance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security
of the holders of such bond anticipation notes;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates), un-
der which the proceeds of such bond anticipation notes
will be made available to the Borrower to finance the
costs of the acquisition and/or development of the Project;
and
(d) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
1416 ORDINANCES Ord. No. 472
of such bond anticipation notes. In accordance with the
Bond Anticipation Note Enabling Legislation, the City
hereby covenants to pay any bond anticipation notes issued
pursuant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation
of the sale of which such notes are issued, and the City
hereby further covenants to issue such Bonds, as the case
may be, when, as soon as, the reason for deferring the
issuance of the Bonds no longer exists. The timely issu-
ance of such Bonds, however, is dependent upon matters
not within the control of the City, including (without limi-
tation) the existence of a purchaser or purchasers for
such Bonds at the time the reason for deferring the issu-
ance of the Bonds no longer exists and the effectiveness
of various actions taken by the Borrower, its officers, agents
and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of
the remaining provisions, sentences, clauses, sections, or
parts of this Ordinance or their application to other per-
sons or circumstances. It is hereby declared to be the leg-
islative intent that this Ordinance would have been passed
if such illegal, invalid or unconstitutional provision, sen-
tence, clause, section or part had not been included herein,
as if the person or circumstances to which this Ordinance
or any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 11. And he it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9
of this Ordinance in anticipation of the issuance of the
Bonds must be issued and sold within one year from the
date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such one year
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
ORDINANCES 1417
sold for one additional term not to exceed one year
from the date on which the first one year period expired.
The Board, in its sole discretion, and without action by
the City Council, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested ex-
tension of the one year period. To the extent that neither
the Bonds or such bond anticipation notes are issued and
sold within twelve months from the date on which this
Ordinance is approved by the Mayor of the City, the au-
thority provided in this Ordinance for the City to issue
and sell the Bonds and such bond anticipation notes shall
expire.
Sec. 12. And he it further ordained, That this Ordinance
shall take eifect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
No. 473
(Council No. 848)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS—
(ROCKLAND INDUSTRIES INTERNATIONAL
PAPER PROJECT)
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore (the ''City") to issue and
sell, at any time or from time to time and in one or more
series, as limited obligations of the City and not upon its
full faith and credit, its industrial development revenue
bonds, to be designated ''Baltimore City, Maryland In-
dustrial Development Revenue Bonds (Rockland Indus-
tries International Paper Project)", in the aggregate
principal amount not to exceed $3,400,000, pursuant to
the provisions of Sub-section (50) of Article II of the
Charter of Baltimore City (1964 Revision), as amended,
for the sole and exclusive purposes of financing the costs.
1418 ORDINANCES Ord. No. 473
charges, fees and expenses in connection with the acqui-
sition, improvement, and renovation of the property sit-
uate at 1601 Edison Highway, and certain improvements
and equipment in connection therewith, to be operated
as a textile manufacturing, distribution, and office facil-
ity by Rockland Industries, Inc., a Maryland corporation,
including payment of the necessary expenses of prepar-
ing, printing and selling such bonds and payment of in-
terest on such bonds during the period of leasing and
acquisition of such property (such period not to exceed
three years following the date of such bonds) ; authoriz-
ing the Mayor of the City to accept, on behalf of the
City, a letter of intent from Rockland Industries, Inc.,
addressed to the City dated October 9, 1981 ; making cer-
tain legislative findings; authorizing and empowering
the Board of Finance of the City, prior to the issuance,
sale and delivery of such bonds, to adopt a resolution
pursuant to which the Board of Finance of the City shall
(a) prescribe, among other things but not limited to, the
form, terms, conditions, provisions, manner or method
of issuing, selling and delivering, and the time or times
of issuance, and any and all other details of such bonds,
and (b) do any and all things necessary, proper or ex-
pedient in connection with the issuance, sale and delivery
of such bonds; authorizing the private (negotiated) sale
of such bonds; providing that Rockland Industries, Inc.
shall agree to submit any plans and specifications to, and
to coordinate with, the Department of Housing and Com-
munity Development in connection with the acquisition
and installment of such project; providing for the ex-
piration of the authorization of the transaction approved
by this Ordinance, if such bonds are not issued and sold
v:ithin six months from, the date this Ordinance is ap-
proved by the Mayor, unless the authorization is ex-
tended by the Board of Finance as provided in this
Ordinance ; and generally providing for and determining
various matters and details in connection with the au-
thorization, issuance, security, sale, delivery and pay-
ment of such bonds.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended (the ''Enabling
Law"), empowers Mayor and City Council of Baltimore
ORDINANCES 1419
(the ''City") to issue, sell and delivery revenue bonds
and to use the proceeds of the sale of such revenue bonds
to finance undertakings for the accomplishment of any
of the purposes, objects and powers of the City. Some of
the general objectives of the City, contemplated by the
Enabling Law, include the relief of conditions of unem-
ployment in Baltimore City, encouraging the increase of
industry and a balanced economy in Baltimore City, pro-
moting economic development in Baltimore City, and
promoting the health, welfare and safety of the residents
of Baltimore City.
The City has received a letter of intent dated October
9, 1981 (the ''Letter of Intent") from Rockland Indus-
tries, Inc., a Maryland corporation (the "Borrower"),
pursuant to which the Borrower has requested the City
to participate in the financing of the costs, charges, fees
and expenses in connection with the acquisition, improve-
ment, and renovation (from time to time hereinafter
referred to collectively as the "acquisition") by the Bor-
rower of a certain project to be located in Baltimore
City, Maryland (the "Project"), by issuing and selling
industrial development revenue bonds of the City in the
aggregate principal amount not to exceed §3,400,000 (the
"Bonds") and by loaning the proceeds of the Bonds to
the Borrower, upon the terms and conditions of a loan
agreement to be entered into between the City and the
Borrower (the "Loan Agreement"), as permitted by the
Enabling Law (such loan being herein referred to as the
"Loan").
The Project and the acquisition thereof, will consist
generally of (a) the acquisition of the lots of land, im-
provements, and equipment located at 1601 Edison High-
way in Baltimore City, (b) the acquisition and installa-
tion in the building located there, which has 335,000
square feet, more or less, of usable space, of any or all
other improvements therein as may be necessary or use-
ful in connection with the operation thereof. The Project
will be operated by the Borrower for use by the Bor-
rower as a textile manufacturing, distribution, and office
facility.
The Loan Agreement will require Borrower (a) to use
the proceeds of the Bonds solely to finance the comple-
1420 ORDINANCES Ord. No. 473
tion of the acquisition, improvement and/'or renovation
of the Project, payment of expenses of issuance of the
Bonds, and pa\Tnent of interest on the Bonds during a
period not to exceed three years following the date of
the Bonds, and (b) to make Loan pajTnents which will
be sufficient to enable the City to pay the principal of
and interest and premium, if any, on the Bonds when
and as the same shall become due and payable.
As security for the Bonds, the City will enter into
either (a) a trust agreement (the "Trust Agreement")
with a corporate trustee (the "Trustee") to be appointed
by the Board of Finance of the City (the "Board") or
(b) an Assignment and Security Agreement (the "As-
signment") with (i) the original purchaser of the Bonds
(the "Original Purchaser"), if on the date of delivery of
the Bonds the acquisition of the Project has been com-
pleted, or (ii) the Original Purchaser and a trustee
(which may be the Original Purchaser) (collectively,
the "Project Fund Trustee"), if on the date of delivery
of the Bonds the acquisition of the Project has not been
completed. Pursuant to the Trust Agreement or the As-
sigimient, the Citi' will assign to the Trustee or, if the
Assignment is entered into, the Original Purchaser, its
successors and assigns, (among other things) (a) all of
the City's right, title and interest in and to and remedies
under the Loan Agreement, including (without limita-
tion) any and all security referred to therein, excepting
only the right of the City to indemnification by the Bor-
rower and to pa\Tnents to the City for expenses incurred
by the City itself, (b) the receipts and revenues of the
City from the Loan, (c) certain moneys which are at
any time or from time to time on deposit with the Trus-
tee or the Project Fund Trustee, (d) all right, title and
interest in and to and remedies with respect to any and
all other property' of every description and nature from
time to time by delivery or by writing of any kind con-
veyed, pledged, assigned or transferred, as and for addi-
tional security for the Bonds, by the City or by anyone
on its behalf or with its written consent, to the Trustee,
or, if the Assignment is entered into, the Original Pur-
chaser, its successors or assigns, and (e) all of the Cit>''s
right, title and interest in and to and remedies under
such other documents, including (without limitation)
ORDINANCES 1421
mortgages, deeds of trust, guaranties and security in-
struments, as the Board shall deem necessary to effectu-
ate the issuance, sale and delivery of the Bonds and
which the Board shall approve by a resolution or resolu-
tions (the ''Resolution") to be adopted by the Board
prior to the issuance, sale and delivery of any of the
Bonds.
The Bonds will be sold at a private (negotiated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by Mayor and City Council of
Baltimore, That acting pursuant to the Enabling Law, it is
hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to lend the proceeds
thereof to the Borrower for the sole and exclusive purposes
of financing the costs of the Project, the expenses of issu-
ance of the Bonds, and interest with respect to the Bonds
during a period not to exceed three years following the
date of the Bonds, will facilitate and expedite the comple-
tion of the acquisition of the Project by the Borrower.
(2) The completion of the acquisition of the Project
by the Borrower and the financing thereof as provided in
this Ordinance will serve to promote the general purposes
contemplated by the Enabling Law by (a) sustaining jobs
and employment in Baltimore City; (b) promoting eco-
nomic development in Baltimore City; and (c) encourag-
ing the increase of industry and a balanced economy in
Baltimore City.
(3) The Bonds and the interest thereon shall not be
general obligations of the City, and shall not be a pledge
of or involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the city, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other constitu-
tional, statutory or charter provision limiting or restrict-
ing the sale or issuance of bonds, notes or other obligations
of the City. The Bonds and the interest thereon shall not
constitute or give rise to any pecuniary liabiliy of the City.
The Bonds and the interest thereon shall be limited obliga-
1422 ORDINANCES Ord. No. 473
tions of the City, repayable by the City solely from the rev-
enue derived from Loan repayments (both principal and
interest) made to the City by the Borrower on account of
the Loan and from any other moneys made available to the
City for such purpose. If a Trust Agreement is entered
into, the proceeds of the Bonds will be paid directly to the
Trustee to be held and disbursed by the Trustee as pro-
vided in the Trust Agreement to be approved by the Board
in the Resolution. If an Assignment is entered into, and
the Project has not been completed on or before the date
of delivery of the Bonds, the Board will provide in the
Resolution that the proceeds will be paid directly to the
Project Fund Trustee and deposited by the Project Fund
Trustee into the Project Fund created under the Assign-
ment. If an Assignment is entered into, and the Board
finds and determines that the Project has been or will be
completed on or before the date of delivery of the Bonds,
the Board may provide in the Resolution that no Project
Fund will be created under the Assignment and that the
proceeds of the Bonds will be paid directly to the Bor-
rower, or for the account of the Borrower, to be used by
the Borrower to pay the costs of, or to reimburse the Bor-
rower for the pa\Tnent of the costs of, the completion of
the Project. Payments of the principal of and premium
(if any) and interest on the Loan will be paid by the Bor-
rower directly to the Trustee as provided in the Trust
Agreement or to the Original Purchaser, its successors
and assigns, as provided in the Assignment, to be ap-
proved by the Board in the Resolution. No such moneys
will be commingled with the City's funds or will be sub-
ject to the absolute control of the City, but will be subject
only to such limited supervision and checks as are deemed
necessary or desirable by the City to insure that the pro-
ceeds of the Bonds are used to accomplish the public pur-
poses of the Enabling Law and this Ordinance. The loan
form of transaction authorized hereunder shall in no event
constitute a capital project within the meaning of any
charter or statutory provision. The pubic purposes ex-
pressed in the Enabling Law are to be achieved by facili-
tating the completion of the Project by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's
property shared by all holders of the Borrower's obliga-
ORDINANCES 1423
tions which rank and are secured equally with the Bor-
rower's obligations pursuant to the Loan Agreement, (b)
any lien and security interest created by the Loan Agree-
ment, and (c) any interest created by any other mortgage
or deed of trust or other security instrument executed and
delivered by the Borrower or any third party as security
for the Loan or the Bonds as the Board may provide for
and approve in the Resolution. The security for the Bonds
shall be solely and exclusively (a) the absolute, irrevocable
and unconditional obligations of the Borrower to make the
payments required by the Loan Agreement, (b) moneys
realized from the liquidation of any lien and security in-
terest created by the Loan Agreement and of any lien or
security interest created with respect to any property as
security for the loan or the Bonds as the Board may pro-
vide for and approve in the Resolution, and (c) moneys
realized from any guaranty of the Bonds or of the Loan
as the Board may provide for and approve in the Resolu-
tion.
(5) The best interests of the City will be served by
selling the Bonds at private (negotiated) sale, as author-
ized by the Enabling Law, upon terms and conditions ap-
proved by the Board in the Resolution.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at any
time or from time to time and in one or more series, and
as limited obligations of the City and not upon its full
faith and credit, its Bonds, the Baltimore City, Maryland
Industrial Development Revenue Bonds (Rockland Indus-
tries International Paper Project), in the aggregate prin-
cipal amount not to exceed $3,400,00, subject to the provi-
sions of this Ordinance and such terms, conditions and
provisions prescribed by the Board of Finance of the City.
The proceeds of the Bonds will be loaned to the Borrow^er
pursuant to the terms and provisions of the Loan Agree-
ment, to be used by the Borrower for the sole and exclusive
purpose of financing the costs, charges, fees, and expenses
in connection with the completion of the Project. The
Bonds and the interest thereon shall be limited obligations
of the City, repayable by the City solely from the revenue
derived from Loan repayments (both principal and inter-
est) made to the City by the Borrower pursuant to the
1424 ORDINANCES Ord. No. 473
Loan Agreement and from any other moneys made avail-
able to the City for such purpose. The security for the
Bonds shall be solely and exclusively as provided in Sec-
tion 1 of this Ordinance.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the
Bonds, and the Mayor of the City is hereby authorized to
accept the Letter of Intent on behalf of the City in order
to further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions
of this Ordinance.
Sec. 4. And be it further ordained, That each of the
Bonds shall bear the descriptive title ''Baltimore City,
Maryland Industrial Development Revenue Bond (Rock-
land Industries International Paper Project)", provided,
that the descriptive title may contain such other decrip-
tive information as the Board may prescribe in the Reso-
lution (e.g. "1981 Series"). The Bonds shall bear interest
at the rate or rates of interest to be determined by nego-
tiation v^ith the original purchaser or purchasers of the
Bonds and to be approved and prescribed by the Board
in the Resolution.
Sec. 5. And be it further ordained, That the definitive
Bonds, which may be engraved, printed or typewritten,
including any Trustee's Certificate of Authentication to
be endorsed thereon if the Trust Agreement is entered
into, shall be in such form, not inconsistent with the En-
abling Law and the provisions of this Ordinance, as the
Board may approve in the Resolution.
Sec. 6. And be it further ordained. That the Bonds shall
be executed in the name of the City and on its behalf by
the Mayor of the City, by his manual or facsimile signa-
ture, and by the Director of Finance of the City, by his
manual or facsimile signature, and the corporate seal of
the City or a facsimile thereof shall be impressed or other-
wise reproduced thereon and attested by the Custodian of
the City Seal, by his manual signature. The Loan Agree-
ment, the Trust Agreement or the Assignment and, where
applicable, all other documents as the Board shall deem
ORDINANCES 1425
necessary to effectuate the issuance, sale and delivery of
the Bonds, shall be executed in the name of the City and
on its behalf by the Mayor of the City by his manual or
facsimile signature, and the corporate seal of the City or
a facsimile thereof shall be impressed or otherwise repro-
duced thereon and attested by the Custodian of the City
Seal by his manual signature. In case any officers whose
signature or a facsimile of whose signature shall appear
on the Bonds or any of the aforesaid documents shall cease
to be such officer before the delivery of the Bonds or
any of the other aforesaid documents, such signature
or such facsimile shall nevertheless be valid and sufficient
for all purposes, the same as if such officer had remained
in office until delivery. The Mayor of the City, the Direc-
tor of Finance of the City, the Custodian of the City Seal
and other officials of the City are hereby authorized and
empowered to do all such acts and things and execute
such documents and certificates as the Board may deter-
mine in the Resolution to be necessary to carry out and
comply with the provisions thereof.
Sec. 7. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time or from time
to time and in one or more series and in such amount or
amounts not exceeding, in the aggregate, the principal
amount of $700,000 as the Board shall prescribe in the
Resolution.
Sec. 8. And be it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of
such form and tenor, and shall be payable in such amounts,
at such times and at such place or places as the Board
shall prescribe in the Resolution.
Sec. 9. And be it further ordained, That the Bonds may
be subject to redemption prior to their stated maturities
upon such terms and conditions as the Board shall pre-
scribe in the Resolution.
Sec. 10. And be it further ordained, That prior to the
issuance, sale and delivery of the Bonds, the Board shall
adopt the Resolution pursuant to which the Board shall :
(a) prescribe the form, tenor, terms and conditions
of and security for the Bonds and their issuance ;
1426 ORDINANCES Ord. No. 473
(b) prescribe the actual amounts, rate or rates of
interest (or the method of determining the same), denomi-
ations, date, actual maturity or maturities, and the place
or places of payment of the Bonds, and the terms and
conditions and details under which the Bonds may be
called for redemption prior to their stated maturities ;
(c) if a Trust Agreement is entered into, appoint a
bank having trust powers, or a trust company, as Trustee
for the Bonds and, if necessary, appoint a paying agent
or agents for the Bonds, which may be the Trustee;
(d) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
and (iii) such other documents, including (without limi-
tation) mortgages, deeds of trust, guaranties and security
instruments as the Board shall deem necessary to approve
in order to effectuate the issuance, sale and delivery of the
Bonds ;
(e) determine the time of execution, issuance, sale and
delivery of the Bonds and prescribe any and all other
details and conditions of the Bonds ;
(f) provide for the direct payment by the Borrower of
all costs, fees and expenses incurred by or on behalf of
the City in connection with the issuance, sale and delivery
of the Bonds, including (without limitation) costs of print-
ing (if any) and issuing the Bonds, legal expenses and
compensation to any person (other than full time employ-
ees of the City) performing services by or on behalf of
the City in connection therewith ;
(g) if the Trust Agreement is entered into, provide
for the issuance and sale (subject to the passage of an
appropriate ordinance authorizing the same as may be
required by the time) of one or more series of additional
bonds and one or more series of refunding bonds ; and
(h) do any and all things, and authorize the officials
of the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and deliv-
ery of the Bonds.
Sec. 11. And he it further ordained, That the loan
Agreement and the Trust Agreement or the Assignment
ORDINANCES 1427
shall contain such terms, provisions and conditions, not
inconsistent with the Enabling Law and the provisions of
this Ordinance, as the Board shall approve in the Resolu-
tion.
Sec. 12. And be it further ordained, That, as authorized
by the Enabling Law, the Bonds shall be sold at private
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 13. And he it further ordained, That the Bonds and
the interest thereon shall not be general obligations of the
City and shall not be a pledge of or involve the faith and
credit or the taxing power of the City, and shall not con-
stitute a debt of the City, all within the meaning of Sec-
tion 7 of Article XI of the Constitution of Maryland or
any other constitutional statutory or charter provision
limiting or restricting the sale or issuance of bonds, notes
or other obligations of the City. The Bonds and the inter-
est thereon shall not constitute or give rise to any pecu-
niary liability of the City. The Bonds, and the interest
thereon, shall be limited obligations of the City, the prin-
cipal of and interest on which Bonds shall be payable by
the City solely from the revenue derived from Loan repay-
ments (both principal and interest) made to the City by
the Borrower on account of the Loan and, to the extent
provided by the Board in the Resolution, from the pro-
ceeds of the Bonds, and from any other moneys made
available to the City for such purpose. If the Trust Agree-
ment is entered into, the proceeds of the Bonds will be
paid directly to the Trustee to be held and disbursed by
the Trustee as provided in the Trust Agreement to be ap-
proved by the Board in the Resolution. If an Assignment
is entered into and the Project has not been completed,
the Board will provide in the Resolution that the proceeds
will be paid directly to the Project Fund Trustee and de-
posited by the Project Fund Trustee into the Project Fund
thereby created under this Assignment, or if the Assign-
ment is entered into and the Board finds and determines
that the Project has been or will be completed on or before
the date of delivery of the revenue bonds, the Board may
provide in the Resolution that the proceeds of the revenue
bonds will be paid directly to the Borrower, or for the
1428 ORDINANCES Ord. No. 473
account of the Borrower, to be used by the Borrower to
pay costs of, or to reimburse the Borrower for payment
of the costs of, the completion of the Project, as provided
in the Assignment to be approved by the Board in the
Resolution. No such moneys will be commingled with the
City's fund or will be subject to the absolute control of
the City, but will be subject only to such limited super-
vision and checks as are deemed necessary or desirable by
the City to insure that the proceeds of the Bonds are used
to accomplish the public purposes of the Enabling Law
and this Ordinance.
Sec. 14. And he it further ordained, That in considera-
tion of the purchase and acceptance of the Bonds by those
w^ho shall hold the Bonds from time to time, the City does
hereby, and by the execution and delivery of the Trust
Agreement or the Assignment to be approved by the Board
shall, set aside or pledge the income and revenue under the
Loan Agreement (other than payments to the City for
indemnification or to reimburse the City for expenses in-
curred by the City itself) to the Trustee or, if the Assign-
ment is entered into, the Original Purchaser, its successors
and assigns, to be used and applied for the payment of
the principal of and interest on the Bonds. Pursuant to
the terms of the Loan Agreement to be approved by the
Board in the Resolution, pajTiients sufficient for the prompt
pa\Tnent when due of the principal of, premium, if any,
and interest on the Bonds are to be paid by the Borrower
to the Trustee for the benefit of the holders of the Bonds,
or, if the Assignment is entered into, to the Original Pur-
chaser, its successors and assigns, for the account of the
City.
Sec. 15. And he it further ordained, That the Borrower
shall agree that :
(a) It will submit any plans and specifications for the
Project to the Department of Housing and Community
Development for approval, and that the Department of
Housing and Communiity Development may refuse ap-
proval of any plans and specifications for aesthetic or
functional reasons ; and
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
ORDINANCES 1429
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 16. And be it further- ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of the
remaining provisions, sentences, clauses, sections, or parts
of this Ordinance or their application to other persons or
circumstances. It is hereby declared to be the legislative
intent that this Ordinance would have been passed if such
illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included herein, and
if the person or circumstances to which this Ordinance or
any part hereof are inapplicable had been specifically
exempted herefrom.
Sec. 17. And be it further ordained, That, if the Bonds
are not issued and sold within six months from the date
on which this Ordinance is approved by the Mayor of the
City, the authorization provided in this Ordinance for the
City to issue and sell the Bonds shall expire; provided,
however, that the Board may, after showing a good cause
at a public hearing held before the Board, extend such
authorization for one additional term not to exceed six
months. The Board, in its sole discretion, shall determine
the sufficiency, or lack thereof, of the reasons presented
for any requested extension of this Ordinance. If an ex-
tension is granted, notice of such extension and the rea-
sons therefor must be sent to the City Council.
Sec. 18. And be it further ordained. That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
1430 ORDINANXES Ord. No. 474
No. 474
(Council No. 850)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS—
(BALTIMORE CAR & TRUCK RENTAL PROJECT)
FOR the purpose of authorizing and empowering Mayor and
City Council of Baltimore (the ''City") to issue and sell, at
any time or from time to time and in one or more series,
as limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, to be
designated "Baltimore City, ^Maryland Industrial Develop-
ment Revenue Bonds (Baltimore Car & Ti'uck Rental Proj-
ect)", in the aggregate principal amount not to exceed
$650,000, pursuant to the provisions of Sub-section (50) of
Article II of the Charter of Baltimore City (1964 Revision) ,
as amended, for the sole and exclusive purposes of financing
the costs, charges, fees and expenses in connection with the
acquisition, improvement, and renovation of the property
situate at 1425-55 Ridgely Street, and certain improve-
ments and equipment in connection therewith, or similar
substitute property, to be operated as a vehicle mainte-
nance, storage and rental facility by Baltimore Car & Truck
Rental Inc., a Maryland corporation, and to be ow^ned by
Leasing Syndications, Ltd., a Maryland corporation, in-
cluding payment of the necessary expenses of preparing,
printing and seHing such bonds during the period of leasing
and acquisition of such property (such period not to exceed
three years folowing the date of such bonds) ; authorizing
the ^layor of the City to accept, on behalf of the City, a
letter of intent from Baltimore Car & Truck Rental Inc.
and Leasing Syndications, Ltd. addressed to the City dated
October 9, 1981 ; making certain legislative findings ;
authorizing and empowering the Board of Finance of the
City, prior to the issuance, sale and delivery of such bonds,
to adopt a resolution pursuant to which the Board of Fi-
nance of the City shall (a) prescribe, among other things
but not limited to, the form, terms, conditions, provisions,
manner or method of issuing, selling and delivering, and
the time or times of issuance, and any and all other details
of such bonds, and (b) do any and all things necessary,
proper or expedient in connection with the issuance, sale
ORDINANCES 1431
and delivery of such bonds ; authorizing the private (nego-
tiated) sale of such bonds ; providing that Baltimore Car
and Truck Rental, Inc. shall agree to submit any plans and
specifications to, and to coordinate with, the Department
of Housing and Community Development in connection
with the acquisition and installment of such project; pro-
viding for the expiration of the authization of the trans-
action approved by this Ordinance, if such bonds are not
issued and sold within six months from the date this
Ordinance is approved by the Mayor, unless the authori-
zation is extended by the Board of Finance as provided in
this Ordinance ; and generally providing for and determin*
ing various matters and details in connection with the
authorization, issuance, security, sale, delivery and pay-
ment of such bonds.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended (the "Enabling
Law"), empowers Mayor and City Council of Baltimore
(the ''City") to issue, sell and deliver revenue bonds to
finance undertakings for the accomplishment of any of
the purposes, objects and powers of the City. Some of the
general objectives of the City, contemplated by the
Enabling Law% include the relief of conditions of unem-
ployment in Baltimore City, encouraging the increase of
industry and a balanced economy in Baltimore City, pro-
moting economic development in Baltimore City, and
promoting the health, welfare and safety of the residents
of Baltimore City.
The City has received a letter of intent dated October
9, 1981 (the 'Tetter of Intent") from Baltimore Car &
Truck Rental Inc. and Leasing Syndications, Ltd., a
Maryland corporation (the "Borrower"), pursuant to
which the Borrower has requested the City to participate
in the financing of the costs, charges, fees and expenses
in connection with the acquisition, improvement, and
renovation (from time to time hereinafter referred to
collectively as the "acquisition") by the Borrower of a
certain project to be located in Baltimore City, Maryland
(the "Project"), by issuing and selling industrial develop-
ment revenue bonds of the City in the aggregate principal
amount not to exceed $650,000 (the "Bonds") and by
1432 ORDINANCES Ord. No. 474
loaning the proceeds of the Bonds to the Borrower, upon
the terms and conditions of a loan agreement to be
entered into between the City and the Borrower (the
''Loan Agreement"), as permitted by the Enabhng Law
(such loan being herein referred to as the "Loan").
The Project and the acquisition thereof, will consist
generally of (a) the acquisition of the lots of land, im-
provements, and equipment located at 1525-55 Ridgely
Street or at a similar substitute location elsewhere in
Baltimore City, (b) the acquisition and installation in
the building located there, which has 8,000 square feet,
more or less, of usable space, of any or all other improve-
ments therein as may be necessary or useful in connection
with the operation thereof. The Project will be operated
by the Borrower for use by the Borrower as a vehicle
maintenance, storage and rental facility.
The Loan Agreement will require Borrower (a) to use
the proceeds of the Bonds solely to finance the completion
of the acquisition, improvement and/or renovation of the
Project, payment of expenses of issuance of the Bonds,
and payment of interest on the Bonds during a period not
to exceed three years following the date of the Bonds,
and (b) to make Loan payments which will be sufficient
to enable the City to pay the principal of and interest and
premium, if any, and the Bonds when and as the same
shall become due and payable.
As security for the Bonds, the City will enter into
either (a) a trust agreement (the "Trust Agreement")
with a corporate trustee (the "Trustee") to be appointed
by the Board of Finance of the City (the "Board") or
(b) an Assignment and Security Agreement (the "As-
signment") w^th (i) the original purchaser of the Bonds
(the "Original Purchaser"), if on the date of delivery of
the Bonds the acquisition of the Project has been com-
pleted, or (ii) the Original Purchaser and a trustee
(which may be the Original Purchaser) (collectively, the
"Project Fund Trustee"), if on the date of delivery of the
Bonds the acquisition of the Project has not been com-
pleted. Pursuant to the Trust Agreement or the Assign-
ment, the City will assign to the Trustee or, if the
Assignment is entered into, the Original Purchaser, its
successors and assigns, (among other things) (a) all of
ORDINANCES 1433
the City's right, title and interest in and to and remedies
under the Loan Agreement, including (without limita-
tion) any and all security referred to therein, excepting
only the right of the City to indemnification by the Bor-
rower and to payment to the City for expenses incurred
by the City itself, (b) the receipts and revenues of the
City from the Loan, (c) certain moneys which are at any
time or from time to time on deposit with the Trustee or
the Project Fund Trustee, (d) all right, title and interest
in and to and remedies with respect to any and all other
property of every description and nature from time to
time by delivery or by writing of any kind conveyed,
pledged, assigned or transferred, as and for additional
security for the Bonds, by the City or by anyone on its
behalf or with its written consent, to the Trustee, or, if
the Assignment is entered into, the Original Purchaser,
its successors or assigns and (e) all of the City's right,
title and interest in and to and remedies under such other
documents, including (without limitation) mortgages,
deeds of trust, guaranties and security instruments, as
the Board shall deem necessary to effectuate the issuance,
sale and delivery of the Bonds and which the Board shall
approve by a resolution or resolutions (the "Resolution")
to be adopted by the Board prior to the issuance, sale
and delivery of any of the Bonds.
The Bonds will be sold at a private (negotiated) sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by Mayor and City Council of
Baltimore, That acting pursuant to the Enabling Law, it is
hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to lend the proceeds
thereof to the Borrower for the sole and exclusive purposes
of financing the costs of the Project, the expenses of issu-
ance of the Bonds, and interest with respect to the Bonds
during a period not to exceed three years following the date
of the Bonds, will facilitate and expedite the completion of
the acquisition of the Project by the Borrower.
(2) The completion of the acquisition of the Project by
the Borrower and the financing thereof as provided in this
1434 ORDINANCES Ord. No. 474
Ordinance will serve to promote the general purposes con-
templated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) The Bonds and the interest thereon shall not be
general obligations of the City, and shall not be a pledge of
or involve the faith and credit or the taxing power of the
City, and shall not constitute a debt of the City, all within
the meaning of Section 7 of Article XI of the Constitution
of Maryland or within the meaning of any other constitu-
tional, statutory or charter provision limiting or restricting
the sale or issuance of bonds, notes or other obligations of
the City, The Bonds and the interest thereon shall not con-
stitute or give rise to any pecuniary liability of the City.
The Bonds and the interest thereon shall be limited obliga-
tions of the City, repayable by the City solely from the
revenue derived from Loan repayments (both principal and
interest) made to the City by the Borrower on account of
the Loan and from any other moneys made available to the
City for such purpose. If a Trust Agreement is entered into,
the proceeds for the Bonds will be paid directly to the
Trustee to be held and disbursed by the Trustee as provided
in the Trust Agreement to be approved by the Board in the
Resolution. If an Assignment is entered into, and the Project
has not been completed on or before the date of delivery of
the Bonds, the Board will provide in the Resolution that the
proceeds will be paid directly to the Project Fund Trustee
and deposited by the Project Fund Ti^ustee into the Project
Fund created under the Assignment. If an Assignment is
entered into, and the Board finds and determines that the
Project has been or will be completed on or before the date
of delivery of the Bonds, the Board may provide in the
Resolution that no Project Fund will be created under the
Assignment and that the proceeds of the Bonds will be paid
directly to the Borrower, or for the account of the Bor-
rower, to be used by the Borrower to pay the costs of, or
to reimburse the Borrower for the payment of the costs of,
the completion of the Project. Payments of the principal of
and premium (if any) and interest on the Loan will be paid
by the Borrower directly to the Trustee as provided in the
Ti'ust Agreement or to the Original Purchaser, its succes-
ORDINANCES 1435
sors and assigns, as provided in the Assignment, to be
approved by the Board in the Resolution. No such moneys
will be commingled with the City's funds or will be subject
to the absolute control of the City, but will be subject only
to such limited supervision and checks as are deemed neces-
sary or desirable by the City to insure that the proceeds of
the Bonds are used to accomplish the public purposes of the
Enabling Law and this Ordinance. The loan form of trans-
action authorized hereunder shall in no event constitute a
capital project within the meaning of any charter or statu-
tory provision. The public purposes expressed in the En-
abling Law are to be achieved by facilitating the completion
of the Project by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's
property shared by all holders of the Borrower's obligations
which rank and are secured equally with the Borrower's
obligations pursuant to the Loan Agreement, (b) any lien
and security interest created by the Loan Agreement, and
(c) any interest created by any other mortgage or deed of
trust or other security instrument executed and delivered by
the Borrower or any third party as security for the Loan
or the Bonds as the Board may provide for and approve in
the Resolution. The security for the Bonds shall be solely
and exclusively (a) the absolute, irrevocable and uncondi-
tional obligations of the Borrower to make the payments
required by the Loan Agreement, (b) moneys realized from
the liquidation of any lien and security interest created by
the Loan Agreement and of any lien or security interest
created with respect to any property as security for the
Loan or the Bonds as the Board may provide for and ap-
prove in the Resolution, and (c) moneys realized from any
guaranty of the Bonds or of the Loan as the Board may
provide for and approve in the Resolution.
(5) The best interests of the City will be served by sell-
ing the Bonds at private (negotiated) sale, as authorized
by the Enabling Law, upon terms and conditions approved
by the Board in the Resolution.
Sec. 2. And he it further ordained, That the City is
hereby authorized and empowered to issue and sell, at any
time or from time to time and in one or more series, and as
1436 ORDINANCES Ord. No. 474
limited obligations of the City and not upon its full faith
and credit, its Bonds, the Baltimore City, Maryland Indus-
trial Development Revenue Bonds (Baltimore Car & Truck
Rental Project), in the aggregate principal amount not to
exceed $650,000, subject to the provisions of this Ordinance
and such terms, conditions and provisions prescribed by the
Board of Finance of the City. The proceeds of the Bonds
will be loaned to the Borrower pursuant to the terms and
provisions of the Loan Agreement, to be used by the Bor-
rower for the sole and exclusive purpose of financing the
costs, charges, fees, and expenses in connection with the
completion of the Project. The Bonds and the interest
thereon shall be limited obligations of the City, repayable
by the City solely from the revenue derived from Loan
repayments (both principal and interest) made to the City
by the Borrower pursuant to the Loan Agreement and from
any other moneys made available to the City for such pur-
pose. The security for the Bonds shall be solely and exclu-
sively as provided in Section 1 of this Ordinance.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept
the Letter of Intent on behalf of the City in order to further
evidence the present intent of the City to issue the Bonds in
accordance with the terms and provisions of this Ordinance.
Sec. 4. And he it further ordained, That each of the
Bonds shall bear the descriptive title ''Baltimore City,
Maryland Industrial Development Revenue Bond (Baltimore
Car & Truck Rental Project)", provided, that the descrip-
tive title may contain such other descriptive information as
the Board may prescribe in the Resolution (e.g. "1981
Series"). The Bonds shall bear interest at the rate or rates
of interest to be determined by negotiation with the original
purchaser or purchasers of the Bonds and to be approved
and prescribed by the Board in the Resolution.
Sec. 5. And he it further ordained. That the definitive
Bonds, which may be engraved, printed or typewritten,
including any Trustee's Certificate of Authentication to be
endorsed thereon if the Trust Agreement is entered into,
shall be in such form, not inconsistent with the Enabling
ORDINANCES 1437
Law and the provisions of this Ordinance, as the Board may
approve in the Resolution.
Sec. 6. And be it further ordained, That the Bonds shall
be executed in the name of the City and on its behalf by
the Mayor of the City, by his manual or facsimile signature,
and by the Director of Finance of the City, by his manual
or facsimile signature, and the corporate seal of the City or
a facsimile thereof shall be impressed or otherwise repro-
duced thereon and attested by the Custodian of the City
Seal, by his manual signature. The Loan Agreement, the
Trust Agreement or the Assignment and, where applicable,
all other documents as the Board shall deem necessary to
effectuate the issuance, sale and delivery of the Bonds, shall
be executed in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature, and
the corporate seal of the City or a facsimile thereof shall be
impressed or otherwise reproduced thereon and attested by
the Custodian of the City Seal by his manual signature. In
case any officer whose signature or a facsimile of whose
signature shall appear on the Bonds or any of the aforesaid
documents shall cease to be such officer before the delivery
of the Bonds or any of the other aforesaid documents, such
signature or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The Mayor of the City, the
Director of Finance of the City, the Custodian of the City
Seal and other officials of the City are hereby authorized
and empowered to do all such acts and things and execute
such documents and certificates as the Board may determine
in the Resolution to be necessary to carry out and comply
with the provisions hereof.
Sec. 7. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time or from time
to time and in one or more series and in such amount or
amounts not exceeding, in the aggregate, the principal
amount of $700,000 as the Board shall prescribe in the
Resolution.
Sec. 8. And be it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of such
form and tenor, and shall be payable in such amounts, at
1438 ORDINANCES Ord. No. 474
such times and at such place or places as the Board shall
prescribe in the Resolution.
Sec. 9. And be it further ordained, That the Bonds may
be subject to redemption prior to their stated maturities
upon such terms and conditions as the Board shall prescribe
in the Resolution.
Sec. 10. And be it further ordained, That prior to the
issuance, sale and delivery of the Bonds, the Board shall
adopt the Resolution pursuant to which the Board shall :
(a) prescribe the form, tenor, terms and conditions of
and security for the Bonds and their issuance ;
(b) prescribe the actual amounts, rate or rates of inter-
est (or the method of determining the same), denomina-
tions, date, actual maturity or maturities, and the place or
places of payment of the Bonds, and the terms and condi-
tions and details under which the Bonds may be called for
redemption prior to their stated maturities ;
(c) if a Trust Agreement is entered into, appoint a bank
having trust powers, or a trust company, as Trustee for
the Bonds and, if necessary, appoint a paying agent or
agents for the Bonds, which may be the Trustee :
(d) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
and (iii) such other documents, including (without limita-
tion) mortgages, deeds of trust, guaranties and security
instruments as the Board shall deem necessary to approve
in order to effectuate the issuance, sale and delivery of the
Bonds ;
(e) determine the time of execution, issuance, sale and
delivery of the Bonds and prescribe any and all other details
and conditions of the Bonds :
(f ) provide for the direct payment by the Borrower of
all costs, fees and expenses incurred by or on behalf of the
City in connection with the issuance, sale and delivery of
the Bonds, including (without limitation) costs of printing
(if any) and issuing the Bonds, legal expenses and compen-
ORDINANCES 1439
sation to any person (other than full time employees of the
City) performing services by or on behalf of the City in
connection therewith ;
(g) if the Trust Agreement is entered into, provide for
the issuance and sale (subject to the passage of an appro-
priate ordinance authorizing the same as may be required
by the time) of one or more series of additional bonds and
one or more series of refunding bonds ; and
(h) do any and all things, and authorize the officials of
the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 11. And be it further ordained, That the Loan
Agreement and the Trust Agreement or the Assignment
shall contain such terms, provisions and conditions, not
inconsistent with the Enabling Law and the provisions of
this Ordinance, as the Board shall approve in the Resolution.
Sec. 12. And he it further ordained, That, as authorized
by the Enabling Law, the Bonds shall be sold at private
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 13. And be it further ordained. That the Bonds and
the interest thereon shall not be general obligations of the
City and shall not be a pledge of or invole the faith and
credit or the taxing power of the City, and shall not consti-
tute a debt of the City, all within the meaning of Section 7
of Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other
obligations of the City. The Bonds and the interest thereon
shall not constitute or give rise to any pecuniary liability of
the City. The Bonds, and the interest thereon, shall be
limited obligations of the City, the principal of and interest
on which Bonds shall be payable by the City solely from the
revenue derived from Loan repayments (both principal and
interest) made to the City by the Borrower on account of
the Loan and, to the extent provided by the Board in the
Resolution, from the proceeds of the Bonds, and from any
other moneys made available to the City for such purpose.
1440 ORDINANCES Ord. No. 474
If the Trust Agreement is entered into, the proceeds of the
Bonds will be paid directly to the Trustee to be held and
disbursed by the Ti^ustee as provided in the Trust Agree-
ment to be approved by the Board in the Resolution. If an
Assignment is entered into and the Project has not been
completed, the Board will provide in the Resolution that the
proceeds will be paid directly to the Project Fund Trustee
and deposited by the Project Fund Trustee into the Project
Fund thereby created under this Assignment, or if the
Assignment is entered into and the Board finds and deter-
mines that the Project has been or will be completed on or
before the date of delivery of the revenue bonds, the Board
may provide in the Resolution that the proceeds of the
revenue bonds will be paid directly to the Borrower, or for
the account of the Borrower, to be used by the Borrower to
pay the costs of, or to reimburse the Borrower for pajment
of the costs of, the completion of the Project, as provided in
the Assignment to be approved by the Board in the Resolu-
tion. No such moneys will be commingled with the City's
funds or will be subject to the absolute control of the City,
but will be subject only to such limited supervision and
checks as are deemed necessary or desirable by the City to
insure that the proceeds of the Bonds are used to accomplish
the public purposes of the Enabling Law and this Ordinance.
Sec. 14. And be it further ordained, That in considera-
tion of the purchase and acceptance of the Bonds by those
who shall hold the Bonds from time to time, the City does
hereby, and by the execution and delivery of the Trust
Agreement or the Assignment to be approved by the Board
shall, set aside or pledge the income and revenue under the
Loan Agreement (other than payments to the City for
indemnification or to reimburse the City for expenses in-
curred by the City itself) to the Trustee or, if the Assign-
ment is entered into, the Original Purchaser, its successors
and assigns, to be used and applied for the payment of the
principal of and interest on the Bonds. Pursuant to the
terms of the Loan Agreement to be approved by the Board
in the Resolution, payments sufl^icient for the prompt pay-
ment when due of the principal of, premium, if any, and
interest on the Bonds are to be paid by the Borrower to the
Trustee for the benefit of the holders of the Bonds, or, if
the Assignment is entered into, to the Original Purchaser,
its successors and assigns, for the account of the City.
ORDINANCES 1441
Sec. 15. And be it further ordained, That the Borrower
shall agree that :
(a) It will submit any plans and specifications for the
Project to the Department of Housing and Community De-
velopment for approval, and that the Department of Hous-
ing and Community Development may refuse approval of
any plans and specifications for aesthetic or functional
reasons ; and
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high qual-
ity site, building, and landscape design.
Sec. 16. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid or
unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity or unconstitutionality, or
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
Ordinance or their application to other persons or circum-
stances. It is hereby declared to be the legislative intent
that this Ordinance would have been passed if such illegal,
invalid or unconstitutional provision, sentence, clause, sec-
tion or part had not been included herein, and if the person
or circumstances to which this Ordinance or any part here-
of are inapplicable had been specifically exempted herefrom.
Sec. 17. And be it further ordained. That, if the Bonds
are not issued and sold within six months from the date on
which this Ordinance is approved by the Mayor of the City,
the authorization provided in this Ordinance for the City to
issue and sell the Bonds shall expire; provided, however,
that the Board may, after showing of good cause at a public
hearing held before the Board, extend such authorization
for one additional term not to exceed six months. The
Board, in its sole discretion, shall determine the sufficiency,
or lack thereof, of the reasons presented for any requested
extension of this Ordinance. If an extension is granted,
notice of such extension and the reasons therefor must be
sent to the City Council.
1442 ORDINANCES Ord. No. 475
Sec. 18. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 475
(Council No. 851)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
JOHNSTON SQUARE
RESIDENTIAL DEVELOPMENT PROGRAM
FOR the purpose of authorizing and providing for the
issuance, sale and delivery, by the Mayor and City Council
of Baltimore (the ''City") of its revenue obhgations for
the Johnston Square Residential Development Program
(as defined in this ordinance) consisting of its revenue
notes, to be used in part to pay the costs of construction
of residential units as described in this ordinance, desig-
nated ''Single-Family Construction Mortgage Revenue
Notes (Johnston Square Loan Program)" in the aggre-
gate principal amount not exceeding $4,500,000, and of
its revenue bonds, to be used in part to provide mortgage
financing for the purchasers of owner-occupied resi-
dential units described in this ordinance, designated
"Single-Family Mortgage Revenue Bonds (Johnston
Square Loan Program)" in the aggregate principal
amount not exceeding S4,000,000, each pursuant to the
provisions of Subsections (51) and (50) of Article II of
the Charter of Baltimore City (1964 Revision, as
amended), in order to use the proceeds for the sole and
exclusive purpose of financing the Johnston Square Resi-
dential Construction Loan Program (as defined in this
ordinance) each as part of the Johnston Square Resi-
dential Development Program (as defined in this ordi-
nance) for the Project Areas within the Johnston Square
Area (each as defined in this ordinance) in the City of
ORDINANCES 1443
Baltimore, including (without limitation) the purchase,
the contracting to purchase or the acquisition of mortgage
loans bearing interest rates below those generally pre-
vailing (at the time of purchase or contract to purchase)
in the private mortgage market (to the extent such a
market exists at that time) for loans of comparable quali-
ity and term in the City of Baltimore, as provided in this
ordinance, for the public purpose of developing readily
available sources of money at low and moderate cost for
the Johnston Square Residential Development Program
(as defined in this ordinance) for the Project Areas
within the Johnston Square Area (each as defined in this
ordinance) within the City of Baltimore; making certain
legislative findings, among others, concerning the public
benefit and purpose of such revenue notes and revenue
bonds; providing that (a) such revenue notes and reve-
nue bonds shall be payable solely and only from Revenue
Note and Bond Loan Program Revenues (as defined in
this ordinance) and (to the extend provided by resolution
of the Board of Finance of the City adopted pursuant to
this ordinance) certain proceeds or such revenue notes
and revenue bonds and (b) such revenue notes and reve-
nue bonds shall not ever constitute, within the meaning
of Section 7 of Article XI of the Constitution of Mary-
land or any other constitutional, statutory or charter pro-
vision or otherwise (i) a debt or general obligation of
the City or any other political subdivision or (ii) a pledge
of or an involvement of the faith and credit or the taxing
powers of the City or any other political subdivision ; au-
thorizing and empowering the Board of Finance of the
City by resolution (i) to determine and set forth certain
matters pertaining to the revenue notes and the revenue
bonds including (without limitation) the form, terms,
provisions (including redemption provisions and sinking
fund requirements, if any) , manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance and any
and all other details of such revnue notes and reve-
nue bonds, (ii) to do any and all things necessary,
proper or expedient in connection with the issuance and
sale of such revenue notes and revenue bonds, including
(without limitation) to approve the form of construction
loan agreements in connection with such revenue notes,
to approve the form of servicing agreements in connec-
1444 ORDINANCES Ord. No. 475
tion with such revenue notes and bonds, to prepare and
distribute preliminary and final official statements or
preliminary and final placement memoranda or circulars
in connection with the sale of such revenue notes and
revenue bonds, to determine the dates, times and places
when underwriting or placement agreements or purchase
agreements shall be submitted by the underwriters or
placement agents for such revenue notes and revenue
bonds or the purchasers of such revenue notes or reve-
nue notes or revenue bonds and to determine certain of
the terms of such agreements, to determine the interest
rate or rates to be paid by the City on such revenue notes
and revenue notes and revenue bonds and (iii) to ap-
prove the form of trust agreements between the City and
the trustee, which trust agreements may (a) pledge or
assign all or any part of the security for such revenue
notes and revenue bonds,, (b) contain reasonable and
proper provisions for the protection and enforcement of
the rights and remedies of the holders of such revenue
notes and revenue bonds, (c) set forth the rights and
remedies of the holders of such revenue notes and reve-
nue bonds and of the trustee and restrict the individual
right of action by the holders of such revenue notes and
revenue bonds, and (d) contain whatever other provi-
sions are deemed reasonable and proper for the security
of the holders of such revenue notes and revenue bonds;
providing that all or a portion of such revenue notes and
revenue bonds may be refunded pursuant to a subsequent
ordinance of the City; and generally providing for and
determining various matters in connection with the au-
thorization, issuance, security, sale and payment of such
revenue obligations for the Johnston Square Residential
Development Program (as defined in this ordinance).
RECITALS
A. Subsection (51) — Loans to Facilitate Low and
Moderate Cost Residential Mortgage Financing Within
the City, of Article II of the Charter of Baltimore City
(1964 Revision, as amended) ("Subsection 51") author-
izes Mayor and City Council of Baltimore (the "City")
to borrow money by the issuance and sale of its revenue
notes and revenue bonds and to utilize the proceeds of
the notes and bonds to develop an owner-occupancy resi-
ORDINANCES 1445
dential mortgage loan program in the City of Baltimore,
Maryland (''Baltimore") to provide readily available
sources of money at low and moderate cost for such resi-
dential mortgage loans within Baltimore through the pur-
chase, contracting to purchase or other acquisition of
mortgage loans (i) bearing interest rates below those
generally prevailing (at the time of purchase or contract
to purchase) in the private mortgage market (to the ex-
tent such a market exists at that time) for loans of com-
parable quality and term in Baltimore and (ii) having
whatever other terms and characteristics as may be de-
termined by the City. Subsection (51) requires that reve-
nue notes and revenue bonds authorized thereunder shall
be issued pursuant to Subsection (50) — Revenue Bonds
and Obligations, of the Charter of Baltimore City (1964
Revision, as amended).
B. Subsection (50) — Revenue Bonds and Obligations,
of Article II of the Charter of Baltimore City (1964 Re-
vision, as amended) (''Subsection (50)") authorizes the
City to borrow money through the issuance and sale of
its revenue notes and revenue bonds for the accomplish-
ment of any of the purposes, objects and powers of the
City. Revenue notes and revenue bonds issued pursuant
to Subsection (50) shall be payable, as to both principal
and interest, solely from and secured solely by (i) the
revenues from or arising in connection with the property
facilities, developments and improvements whose financ-
ing is undertaken by issuance of the notes or bonds, (ii)
the revenues from or arising in connection with any con-
tracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of the notes or bonds,
(iii) the contracts, mortgages or other securities pur-
chased or otherwise acquired with the proceeds of the
notes or bonds, or (iv) any combination of (i), (ii) or
(iii).
C. Subsection (50) further authorizes the City to au-
thorize and empower the Board of Finance of the City by
resolution (i) to determine and set forth certain matters
pertaining to the revenue notes and revenue bonds, in-
cluding (without limitation) the forms, terms, provisions,
manner or method of issuing and selling (including ne-
gotiated as well as competitive bid sales) and the time or
times of issuance and any and all other details of such
1446 ORDINANCES Ord. No. 475
revenue notes or revenue bonds, (ii) to do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such revenue notes or revenue
bonds, and (iii) to approve the form of a trust agreement
betwen the City and the trustee, which trust agreement
may (a) pledge or assign all or any part of the security
for such notes or bonds, (b) contain reasonable and
proper provisions for the protection and enforcement of
the rights and remedies of the holders of such notes or
bonds, (c) set forth the rights and remedies of the hold-
ers of such notes or bonds and of the trustee and restrict
the individual rights of action by the holders of the notes
or bonds, and (d) contain whatever other provisions are
deemed reasonable and proper for the security of the
holders of such notes or bonds.
D. Subsection (51) and Subsection (50) are referred
to herein collectively as the "Enabling Laws".
E. Subsection (51) declares, among other things, that
borrowing money thereunder by the issuance of revenue
notes or revenue bonds shall be for the essential public
purpose of (i) preserving a healthy and viable economy
within Baltimore, (ii) encouraging and facilitating the
creation or maintenance of a healthy and ready market
for residential real estate in Baltimore, including (with-
out limitation) the ready sale and purchase of existing
residential real estate and the purchase, acquisition,
construction, erection or development of buildings or
structures for o\\Tier-occupied residential purposes, in-
cluding any land necessary therefor, within the boun-
daries of Baltimore, (iii) encouraging and facilitating
the purchase of residential real property in Baltimore
in order to maintain and encourage gro\\i:h in real prop-
erty assessments in Baltimore, and (iv) preserving the
public health, safety and welfare of the residents of
Baltimore by enabling residents of Baltimore of all in-
come levels to finance readily their housing needs in Balti-
more, thus discouraging the proliferation of vacant and
substandard housing in Baltimore and retarding or re-
versing the movement of financially self sufficient tax-
payers to surrounding subdivisions.
F. The Project Area of the Johnston Square Resi-
dential Development Program shall be located in the Cit>^
ORDINANCES 1447
of Baltimore in the block bounded by Biddle, Valley,
Preston, and Homewood Streets in Johnston Square.
Consisting of single family residential dwelling units in-
cluding but not limited to townhouse, condominiums co-
operatives, or other residential structures.
G. As part of the development of the Johnston
Square Area, the City seeks to promote owner-occupied
residential units within Baltimore and the Johnston
Square Area offering a variety of good housing accommo-
dations in an attractive environment (such program as it
may have heretofore or may hereafter be amended, or
supplemented or extended to other areas from time to
time called the ''Johnston Square Residential Develop-
ment Program").
H. Pursuant to the Johnston Square Residential De-
velopment Program, the City proposes to provide neces-
sary construction financing as determined from time to
time (such program as it may have heretofore or may
hereafter be amended, supplemented or extended to other
areas from time to time called the "Johnston Square
Residential Construction Loan Program'' for developers
and builders (herein "developers"), and necessary long-
term mortgage financing (such program as it may have
heretofore or may hereafter be amended, supplemented or
extended to other areas from time to time called "John-
ston Square Residential Mortgage Loan Program") for
purchasers (herein "mortgagors") of residential units in
the Project Area through several isues of the City's reve-
nue notes and revenue bonds.
L Pursuant to the Enabling Laws, the City has deter-
mined to issue and sell in an amount not to exceed
$4,500,000, aggregate principal amount of its "Single-
Family Construction Mortgage Revenue Notes (Johnston
Square Loan Program)", (the "Notes") and to use the
proceds of the Notes to provide construction financing
for development of an owner-occupancy residential loan
program for the Johnston Square Residential Develop-
ment Program which loan program will include (without
limitation) the financing of construction loans for the
developer.
J. Pursuant to the Enabling Laws, the City has deter-
mined to issue and sell in an amount not to exceed
1448 ORDINANCES Ord. No. 475
$4,000,000, aggregate principal amount of its "Single-
Family Mortgage Revenue Bonds (Johnston Square Loan
Program)", (the ''Bonds") and use the proceeds of the
Bonds, to develop an owner-occupancy residential loan
program for the Johnston Square Residential Develop-
ment Program, which loan program will include (without
limitation) the financing of mortgage loans for the
Mortgagors.
K. The City has determined to issue and sell the Notes
and the Bonds to effectuate the public purpose of (i)
preserving a healthy and viable economy within Balti-
more, (ii) encouraging and facilitating the creation or
maintenance of a healthy and ready market for residential
real estate in Baltimore, including (without limitation)
the ready sale and purchase of existing residential real
estate and the purchase, acquisition, construction, erec-
tion or development of buildings or structures for owner-
occupied residential purposes, including any land neces-
sary therefor, within the boundaries of Baltimore, (iii)
encouraging and facilitating the purchase of residential
real property in Baltmore in order to maintain and en-
courage growth in real property assessments in Balti-
more, and (iv) preserving the public health, safety and
welfare of the residents of Baltimore by enabling resi-
dents of Baltimore of all income levels to finance readily
their housing needs in Baltimore, thus discouraging
the proliferation of vacant and substandard housing in
Baltimore and retarding or reversing the movement of
financially self sufficient taxpayers to surrounding sub-
divisions.
L. Pursuant to authority provided in Article XI-H of
the Constitution of Maryland and laws enacted pursuant
thereto, the City from time to time has general funds
available for use to make or contract to make or to guar-
antee or insure financial loans to any person or other legal
entity to be used for or in connection with the purchase,
acquisition, construction, erection or development of
buildings or structures, including any land necessary
therefor, within the boundaries of Baltimore, which
buildings or structures are to be used or occupied for
residential purposes. Pursuant to such authority, or as
otherwise may be permitted by applicable law, the City,
ORDINANCES 1449
acting through the Department of Housing and Commu-
nity Development of the City and the Board of Estimates
of the City, may determine from time to time to make,
guarantee or insure financial loans in connection with the
owner-occupied residential units for the Project Areas to
supplement the proceeds of the Notes and Bonds to de-
velop the Johnston Square Residential Construction Loan
Program and the Johnston Square Residential Mortgage
Loan Program as an integral part of the Johnston
Square Residential Development Program.
M. The City has determined to use, in part, the pro-
ceeds of the Bonds to provide mortgage financing to the
purchasers of the owTier-occupied residential units in the
Project Area pursuant to the Inner Harbor Residential
Development Program by making loans to finance such
purchases.
Section 1. Be it ordained by Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Laws,
it is hereby found and determined, as follows :
(1) The isuance of revenue notes and revenue bonds by
the City pursuant to the Enabling Laws to develop the
Johnston Square Residential Construction Loan Program
and the Johnston Square Residential Mortgage Loan Pro-
gram each as a part of the Johnston Square Residential
Development Program in Baltimore through the purchase,
contracting to purchase or other acquisition of mortgage
loans (i) bearing interest rates below those generally pre-
vailing (at the time of purchase or contract to purchase)
in the private mortgage market (to the extent such a mar-
ket exists at that time) for loans of comparable quality and
term in Baltimore and (ii) having the terms and charac-
teristics as determined by this ordinance and the Board of
Finance acting pursuant to this ordinance, will encourage
and facilitate the purchase of residential property in the
Project Area by residents of Baltimore of all income levels.
(2) The accomplishment of the transactions contem-
plated and authorized by this ordinance, including (without
limitation) the development of the Johnston Square Resi-
dential Construction Loan Program and the Johnston
Square Residential Mortgage Loan Program, will accom-
plish a public purpose and meet existing public needs by
1450 ORDINANCES Ord. No. 475
(i) preserving a healthy and viable economy within Balti-
more, (ii) encouraging and facilitating the creation or
maintenance of a healthy and ready market for residential
real estate in Baltimore, including (without limitation) the
ready sale and purchase of existing residential real estate
and the purchase, acquisition, construction, erection or de-
velopment of buildings or structures for owner-occupied
residential purposes, including any land necessary therefor,
within the boundaries of Baltimore City, (iii) encouraging
and facilitating the purchase of residential real property in
Baltimore in order to maintain and encourage gro\\i:h in
real property assessments in Baltimore, and (iv) preserv-
ing the public health, safety and welfare of the residents of
Baltimore by enabling residents of Baltimore of all income
levels to finance readily their housing needs in Baltimore,
thus discouraging the proliferation of vacant and substand-
ard housing in Baltimore and retarding or reversing the
movement of financially self sufficient taxpayers to sur-
rounding subdivisions.
(3) Neither notes or bonds nor interest coupons issued
under the authority of the Enabling Laws constitute (i) a
debt or general obligation of the City or any other political
subdivisions, or (ii) a pledge of or an involvement of the
faith and credit or the taxing powers of the City or any
other political subdivision, all within the meaning of Sec-
tion 7 of Article XI of the Constitution of Maryland or any
other constitutional, statutory or charter provision. The
principal of and interest on the Notes and Bonds shall be
payable from, and secured by, (i) an assignment of pay-
ments, proceeds, charges, rents and any other income or
payments (except certain escrow payments) to be derived
in cash by or for the account of the City from or related to
the Johnston Square Residential Construction Loan Pro-
gram and the Johnston Square Residential Mortgage Loan
Program, including (without limitation) pajments (as de-
termined by resolution of the Board of Finance adopted
pursuant to this ordinance) of principal and interest on
construction mortgage loans made by the City to the devel-
oper of owner-occupied residential units in the Johnston
Square Residential Development Program and on mortgage
loans made by the City to Mortgagors (all such income or
payments called the "Revenue Note and Bond Loan Pro-
gram Revenues") and (ii) (to the extent provided by reso-
ORDINANCES 1451
lution of the Board of Finance adopted pursuant to this
ordinance) proceds of the Notes and Bonds. The principal
of and interest on the Notes shall be secured by (without
limitation) construction mortgages from the developer in
connection with the Johnston Square Residential Construc-
tion Loan Program (the ''Construction Mortgages"). The
principal of and interest on the Bonds shall be secured by
(without limitation) mortgages from Mortgagors in con-
nection with the Johnston Square Residential Mortgage
Loan Program (the ''Unit Mortgages"). The Notes and
Bonds may be additionally secured (without in any way
specifying or limiting the terms of such additional security)
by (i) insuring all or a part of the Unit Mortgages by
private mortgage insurance provided by one or more private
mortgage insurers selected by the Board of Finance; or
(ii) insuring all or a part of the Unit Mortgages through
the Maryland Housing Fund or such other Federal, State or
municipal fund or other agency permitted by applicable law
to perform such insuring functions; or (iii) assigning the
the proceeds of the mortgage insurance to the trustee for the
holders of the Notes and Bonds (the "Bondholders") ; or
(iv) such other security as the Board of Finance may by
resolution approve; or (v) any combination of (i), (ii),
(iii) and (iv).
The principal amount of the Notes and Bonds will be
paid directly to, and will be disbursed by, the independent
trustee or trustees appointed by the Board of Finance pur-
suant to this ordinance (the "Trustee"). No such moneys
will be either commingled with the City's general funds or
made subject to the absolute control of the City, except for
such limited supervision and checks as are deemed necessary
or desirable by the City to insure that the proceeds of the
Notes and Bonds are used to accomplish the public purposes
of the Enabling Laws and this ordinance. The Revenue
Note and Bond Loan Program Revenues, in the case of
construction financing for the developer, will be paid by the
developer to the Trustee as servicer for the Construction
Mortgages or as Trustee for the Johnston Square Residen-
tial (Construction Loan Program, as stipulated in the con-
struction loan agreement or agreements to be entered into
by the City with an agent, or agents, for construction loan
servicing of the Construction Mortgages. The Revenue
Note and Bond Loan Program Revenues, in the case of
1452 ORDINANCES Ord. No. 475
financing for Mortgagors, will be paid by the Mortgagors
to the mortgage servicer or servicers for the Johnston
Square Residential Mortgage Loan Program, as stipulated
in the servicing agreement or agreements to be entered into
by the City with a servicing agent or agents for the Unit
Mortgages, and the Revenue Note and Bond Loan Program
Revenues, less the servicing fee to be approved by the Board
of Finance, shall be paid by such servicer to the Trustee.
The transactions authorized hereby do not constitute a pub-
lic improvemnt or a capital project within the meaning of
any charter or statutory provision. The public purposes
expressed in this ordinance are intended to be achieved by
providing residential low and moderate cost mortgage con-
struction loans to the developer of the Johnston Square
Residential Development Program and residential low and
moderate cost mortgage loans to the Mortgagors, each
within Baltimore; preserving a healthy economy within
Baltimore; fostering a healthy market for residential real
estate in Baltimore; fostering the purchase of residential
real propertiy in Baltimore and providing affordable hous-
ing within Baltimore, thus discouraging the movement of
taxpayers to surrounding subdivisions.
Sec. 2. And be it further ordained. That, the issuance,
sale and delivery of not exceeding S4, 500, 000, aggregate
principal amount of revenue notes, hereby designated
''Single-Family Construction Mortgage Revenue Notes
(Johnston Square Loan Program)", and the issuance, sale
and delivery of not exceding 84,000,000, aggregate principal
amount of revenue bonds, hereby designated "Single-
Family Mortgage Revenue Bonds (Johnston Square Loan
Program) " are hereby authorized, subject to the provisions
of this ordinance, the proceeds to be used to develop the
Johnston Square Residential Construction Loan Program
and the Johnston Square Residential Development Pro-
gram, all as set forth in this ordinance. In addition to the
disbursement of Note and Bond proceeds for construction
loans and mortgage loans under the Johnston Square Resi-
dential Construction Loan Program and the Johnston
Square Residential Mortgage Loan Program, Note and
Bond proceeds may be disbursed (without limitation) (i)
with respect to construction loans, to pay all costs of plan-
ning, development and construction of the owner-occupied
residential units for the Johnston Square Residential Devel-
ORDINANCES 1453
opment Program including (without limitation) architect's
and enginers' fees and taxes, land costs, land development
costs, interest during the construction period, construction
materials and equipment, construction contracting services
and payment and performance bonds, (ii) to pay the cost
of issuance and sale of the Notes and Bonds, including
(without limitation) costs of printing Notes and Bonds, the
official statement and other legal documents, costs of deliv-
ery of the Notes and Bonds, commitment fees, legal fees,
accounting fees, underwriting costs, advertising costs, costs
of rating agency reviews and all other incidental related
expenses and (iii) (to the extent provided by resolution of
the Board of Finance adopted pursuant to this ordinance)
to fund a debt service reserve or other reserve funds for the
Notes and Bonds. The Notes and Bonds shall be solely and
exclusively payable from the Revenue Note and Bond Loan
Program Revenues and (to the extent provided by resolu-
lution of the Board of Finance adopted pursuant to this
ordinance) certain Note and Bond proceeds. The Notes and
Bonds shall be secured (to the extent provided by resolution
of the Board of Finance adopted pursuant to this ordinance)
by (without limitation) the Construction Mortgages and
the Unit Mortgages. The Board of Finance may require,
however, that the Notes and Bonds be additionally secured
by (i) insuring the Construction Mortgages and Unit
Mortgages through private mortgage insurance provided
by one or more private mortgage insurers selected by the
Board of Finance; or (ii) insuring the Construction Mort-
gages and Unit Mortgages through the Maryland Housing
Fund or such Federal, State, or municipal fund or other
agency permitted by applicable law to perform such insur-
ing functions; or (iii) assigning the proceeds of the mort-
gage insurance to the Trustee for the Bondholders; or
(iv) such other security as the Board of Finance may ap-
prove; or (v) any combination of (i), (ii), (iii) and (iv).
The aggregate principal amount of Notes issued, sold and
delivered pursuant to this ordinance shall not exceed
$4,500,000, and the aggregate principal amount of the
Bonds issued, sold and delivered pursuant to this ordinance
shall not exceed $4,000,000, unless such amount or amounts,
in each case, shall be increased by an ordinance of the City
supplemental hereto. The City contemplates that, because
of inflation and other factors which may occur during the
development and construction periods of the Project Area,
1454 ORDINANCES Ord. No. 475
the City will amend or supplement this ordinance from time
to time to increase such amounts or otherwise to provide
for matters affecting the Johnston Square Residential De-
velopment Program. Nothing in this ordinance is intended
or shall be demed to exclude the issuance of refunding
bonds to refund all or a portion of the Notes or Bonds, and
the adoption of a subsequent ordinance or ordinances for
such purpose is expressly contemplated by this ordinance.
In accordance with the Enabling Laws, the City hereby
authorizes the Board of Finance, unless the City shall other-
wise prescribe prior to the issuance and delivery of the
Notes or Bonds, by resolution to take the following actions
and to make the following commitments on behalf of the
City:
(a) to detennine and set forth the form, terms, provi-
sions (including redemption provisions and sinking fund
requirements, if any), manner or method of issuing and
selling (including negotiated or competitive bid sale) and
the time or times of issuance and any and all other details
of the Notes and Bonds ;
(b) to determine and set forth the form, terms and pro-
visions of construction loan agreements, servicing agree-
ments and all other construction and mortgage loan and
other documents in connection with the Notes and Bonds ;
(c) to prepare and distribute, in conjunction with the
prospective underwriters or placement agents, if any, for
the Notes and Bonds, preliminary and final official state-
ments or placement memoranda or circulars as the Board
of Finance deems necessary and appropriate in connection
with the sale of the Notes and Bonds; provided, however,
that any such preliminary official statements or placement
memoranda or circulars shall be clearly marked to indicate
that they are subject to completion and amendment;
(d) to determine the dates, times and places when an
underwriting or placement agreement or purchase contract
shall be submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds, such underwriting or placement proposed to be paid
on the Notes and Bonds, the price at which such Notes and
Bonds are to be sold to such underwriters, placement agents
or purchasers, and such other matters as the underwriters,
ORDINANCES 1455
placement agents or purchasers and the Board of Finance
may deem necessary or desirable in order to effect the sale
and delivery of the Notes and Bonds ;
(e) to determine the interest rate or rates to be paid by
the City on the Notes and Bonds in accordance with the
proposed underwriting or placement agreement or purchase
contract submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds ;
(f) to appoint, as the Board of Finance deems neces-
sary and appropriate, a bank having trust powers, or a
trust company, as trustee for the Notes and Bonds to be
issued pursuant to this ordinance ; and
(g) to approve the form of trust agreements between
the City and the Trustee, which trust agreements may (i)
pledge or assign all or any part of the security of the
Notes and Bonds, (ii) contain reasonable and proper pro-
visions for the protection and enforcement of the rights and
remedies of the Bondholders, (iii) set forth the rights and
remedies of the Bondholders and the Trustee and may re-
strict the individual right of action by the Bondholders,
and (iv) contain whatever other provisions are deemed
reasonable and proper for the security of the Bondholders.
The Board of Finance shall perform any and all actions
necessary or deemed appropriate by such Board in order to
effect the issuance and sale of the Notes and Bonds in accord-
ance with and pursuant to this ordinance and the under-
writing or placement agreements or purchase contracts for
the Notes and Bonds.
The Notes and Bonds shall be dates as of the first day of
the month next following the date on which the Notes and
Bonds are sold unless the Board of Finance shall specifiy
a different date by a resolution adopted pursuant to this
ordinance, and the Notes and Bonds shall bear interest at
an annual rate or rates payable semi-annually following the
date of the Notes and Bonds so that, if the Notes and Bonds
are dated October 1, 1981, interest on the Notes and Bonds
will be payable on March 1, 1982 and semi-annually there-
after each October 1 and March 1 unless the Board of Fi-
nance shall specify more frequent or different dates by a
resolution adopted pursuant to this ordinance.
1456 ORDINANCES Ord. No. 475
The Notes and Bonds issued hereunder shall mature on
the date or dates provided in a resolution of the Board of
Finance adopted pursuant to this ordinance, but the last
maturity of each series of Notes shall in no event exceed
a period of five (5) years from the date of such series of
Notes and the last maturity of each series of the Bonds
shall in no event exceed a period of forty (40) years from
the date of such series of Bonds. If the resolution of the
Board of Finance does not provide any maturity of maturi-
ties for the Notes, all of the Notes of a series shall mature
on the date five (5) years from the date of such series of
Notes. For example, if the Note is dated September 30,
1981, all of the Notes of such series will mature (in the
absence of a resolution of the Board of Finance determin-
ing otherwise) on September 30, 1986. If the resolution of
the Board of Finance does not provide any maturity or
maturities for the Bonds, all of the Bonds of a series shall
mature on the date thirty-two (32) years from the date of
such series of the Bonds. For example, if the Bond is dated
September 30, 1981, all the Bonds of such series will mature
(in the absence of a resolution of the Board of Finance
determining otherwise) on September 30, 2013.
Sec. 3. And be it further ordained, That, prior to the
sale of the Notes and Bonds, the Board of Finance, unless
the City shall otherwise prescribe, may determine by reso-
lution :
(1) the provisions of trust between the City and the
Trustee ;
(2) the manner of execution, authentication, registra-
tion and transfer of the Notes and Bonds;
(3) provisions for authentication and delivery of the
Notes and Bonds;
(4) the provisions of the Johnston Square Residential
Construction Loan Program and of the Johnston Square
Residential Mortgage Loan Program, including (i) the
terms of the construction loans and of the Construction
Mortgages acquired under the Johnston Square Residential
Construction Loan Program, (ii) the terms of the mortgage
loans and of the Unit Mortgages acquired under the John-
ston Square Residential Mortgage Loan Program, and
ORDINANCES 1457
(iii) the terms of any servicing agreement between the
City and a mortgage servicer for the Construction Mort-
gages and the Unit Mortgages ;
(5) the terms of the private insurance, public insur-
ance or other security for the Notes and Bonds;
(6) provisions for creation, holding and disbursement
of a construction loan and a program fund to be held by
the Trustee;
(7) provisions for creation, holding and disbursement
of any other funds and accounts to be held by the Trustee ;
(8) provisions for the application of the Revenue Note
and Bond Loan Program Revenues ;
(9) provisions for the security for and investment of
moneys held by the Trustee ;
(10) the details of the procedure for the redemption of
the Notes and Bonds ;
(11) remedies for Bondholders in the event of default;
(12) the duties, rights and immunities of the Trustee;
(13) the manner of execution of instruments by Bond-
holders and the method of proof of ownership of the Notes
and Bonds;
(14) provisions for modification of this ordinance;
(15) provisions for defeasance of the Notes and Bonds;
(16) the forms of the Notes and Bonds, coupons and
the Trustee's authentication certificate ; and
(17) such other maters in connection with the authori-
zation, issuance, security, sale and payment of the Notes
and Bonds as may be deemed appropriate by the Board of
Finance.
Any resolution of resolutions adopted pursuant to this
ordinance shall be demed to be of an administrative nature.
Sec. 4 And be it further ordained, That, the Board of
Finance may approve the issuance of the Notes and Bonds
in one or more series from time to time as the Board of
Finance by resolution adopted pursuant to this ordinance
deems necessary or appropriate in connection with the
1458 ORDINANCES Ord. No. 475
schedule, as amended from time to time, of the Johnston
Square Residential Development Program. It is hereby
declared that singular terms shall include the plural and
plural the singular so that each provision of this ordinance
shall apply to each series of Notes and Bonds.
Sec. 5. And be it further ordained, That Mayor and
City Council may amend this ordinance from time to time
as necessary and appropriate to increase the authorization
for revenue notes and revenue bonds for the Johnston
Square Residential Development Program for increased
costs or other changes in the Johnston Square Residential
Development Program for the Project areas, or otherwise.
Sec. 6. And be it further ordained, That, if any action
or any matter delegated to the Board of Finance, or author-
ized for implementation by the Board of Finance, shall not
be acted upon by the Board of Finance, such actions and
matters may be acted upon or implemented by a resolution
approved by the City Council of the City, which is subse-
quently approved by the Mayor or acting Mayor of the
City.
Sec. 7. And be it further ordained, That, the provisions
of this ordinance are severable, and if any provision, sen-
tence, clause, section or part thereof is held illegal, invalid
or unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity or unconstitutionality, or
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
ordinance or its applications to other persons or circum-
stances. It is hereby declared to be the legislative intent that
this ordinance would have been adopted if such illegal, in-
valid or unconstitutional provision, sentence, clause, section
or part had not been included therein, and if the person or
circumstances to which this ordinance or any part thereof
is inapplicable had been specifically exempted therefrom.
Sec. 8. And be it further ordained, That, this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
ORDINANCES 1459
No. 476
(Council No. 852)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
HARLEM PARK
RESIDENTIAL DEVELOPMENT PROGRAM
FOR the purpose of authorizing and providing for the
issuance, sale and delivery, by the Mayor and City Council
of Baltimore (the ''City") of its revenue obhgations for
the Harlem Park Residential Development Program (as
defined in this ordinance) consisting of its revenue notes,
to be used in part to pay the costs of construction of
residential units as described in this ordinance, designated
''Single-Family Construction Mortgage Revenue Notes
(Harlem Park Loan Program) " in the aggregate principal
amount not exceeding $3,000,000, and of its revenue
bonds, to be used in part to provide mortgage financing
for the purchasers of owner-occupied residential units
described in this ordinance, designated "Single-Family
Mortgage Revenue Bonds (Harlem Park Loan Program)"
in the aggregate principal amount not exceeding
$3,700,000, each pursuant to the provisions of Subsections
(51) and (50) of Article II of the Charter of Baltimore
City (1964 Revision, as amended), in order to use the
proceeds for the sole and exclusive purpose of financing
the Harlem Park Residential Construction Loan Program
(as defined in this ordinance) each as part of the Harlem
Park Residential Development Program (as defined in this
ordinance) for the Project Areas within the Harlem Park
Area (each as defined in this ordinance) in the City of
Baltimore, including (without limitation) the purchase,
the contracting to purchase or the acquisition of m.ortgage
loans bearing interest rates below those generally prevail-
ing (at the time of purchase or contract to purchase) in
the private mortgage market (to the extent such a market
exists at that time) for loans of comparable quality and
term in the City of Baltimore, as provided in this ordi-
nance, for the public purpose of developing readily avail-
able sources of money at low and moderate cost for the
Harlem Park Residential Development Program (as de-
fined in this ordinance) for the Project Areas within the
1460 ORDINANCES Ord. No. 476
Harlem Park Area (each as defined in this ordinance)
within the City of Baltimore; making certain legislative
findings, among others, concerning the public benefit and
purpose of such revenue notes and revenue bonds ; provid-
ing that (a) such revenue notes and revenue bonds shall
be payable solely and only from Revenue Note and Bond
Loan Program Revenues (as defined in this ordinance) and
(to the extend provided by resolution of the Board of
Finance of the City adopted pursuant to this ordinance)
certain proceds or such revenue notes and revenue bonds
and (b) such revenue notes and revenue bonds shall not
ever constitute, within the meaning of Section 7 of Article
XI of the Constitution of IMaryland or any other constitu-
tional, statutory or charter provision or otherwise (i) a
debt or general obligation of the City or any other political
subdivision or (ii) a pledge of or an involvement of the
faith and credit or the taxing powders of the City or any
other political subdivision; authorizing and em.powering
the Board of Finance of the City by resolution (i) to de-
termine and set forth certain matters pertaining to the
revenue notes and the revenue bonds including (without
limitation) the form, terms, provisions (including re-
demption provisions and sinking fund requirements, if
any), manner or method of issuing and selling (including
negotiated as well as competitive bid sale), and the time
or times of issuance and any and all other details of such
revenue notes and revenue bonds, (ii) to do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such revenue notes and revenue
bonds, including (without limitation) to approve the form
of construction loan agreements in connection with such
revenue notes, to approve the form of servicing agree-
ments in connection wath such revenue notes and bonds,
to prepare and distribute preliminary and final official
statements of preliminary and final placement memoranda
or circulars in connection with the sale of such revenue
notes and revenue bonds, to determine the dates, times
and places when underwriting or placement agreements
or purchase agreements shall be submitted by the under-
writers or placement agents for such revenue notes and
revenue bonds or the purchasers of such revenue notes or
revenue bonds and to determine certain of the terms of
such agreements, to determine the interest rate or rates
ORDINANCES 1461
to be paid by the City on such revenue notes and revenue
bonds and to appoint a trustee for such revenue notes and
revenue notes and revenue bonds, and (iii) to approve the
form of trust agreements between the City and the
trustee, which trust agreements may (a) pledge or assign
all or any part of the security for such revenue notes and
revenue bonds, (b) contain reasonable and proper provi-
sions for the protection and enforcement of the rights and
remedies of the holders of such revenue notes and revenue
bonds, (c) set forth the rights and remedies of the hold-
ers of such revenue notes and revenue bonds and of the
trustee and restrict the individual right of action by the
holders of such revenue notes and revenue bonds, and (d)
contain whatever other provisions are deemed reasonable
and proper for the security of the holders of such reve-
nue notes and revenue bonds ; providing that all or a por-
tion of such revenue notes and revenue bonds may be
refunded pursuant to a subsequent ordinance of the City ;
and generally providing for and determining various mat-
ters in connection with the authorization, issuance, secu-
rity, sale and payment of such revenue obligations for the
Harlem Park Residential Development Program (as de-
fined in this ordinance) .
RECITALS
A. Subsection (51) — Loans to Facilitate Low and
Moderate Cost Rseidential Mortgage Financing Within
the City, of Ai'ticle II of the Charter of Baltimore City
(1964 Revision, as amended) (''Subsection 51") author-
izes Mayor and City Council of Baltimore (the "City") to
borrow money by the issuance and sale of its revenue
notes and revenue bonds and to utihze the proceeds of the
notes and bonds to develop an owner-occupancy residen-
tial mortgage loan program in the City of Baltimore,
Maryland (''Baltimore") to provide readily available
sources of money at low and moderate cost for such resi-
dential mortgage loans within Baltimore through the
purchase, contracting to purchase or other acquisition of
mortgage loans (i) bearing interest rates below those
generally prevailing (at the time of purchase or contract
to purchase) in the private mortgage market (to the
extent such a market exists at the time) for loans of
comparable quality and term in Baltimore and (ii) hav-
1462 ORDINANCES Ord. No. 476
ing whatever other terms and characteristics as may be
determined by the City. Subsection (51) requires that
revenue notes and revenue bonds authorized thereunder
shall be issued pursuant to Subsection (50) — Revenue
Bonds and Obligations, of the Charter of Baltimore City
(1964 Revision, as amended).
B. Subsection (50) — Revenue Bonds and Obligations,
of Article II of the Charter of Baltimore City (1964 Re-
vision, as amended) (''Subsection (50)") authorizes the
City to borrow money through the issuance and sale of
its revenue notes and revenue bonds for the accomplish-
ment of any of the purposes, objects and powers of the
City. Revenue notes and revenue bonds issued pursuant
to Subsection (50) shall be payable, as to both principal
and interest, solely from and secured solely by (i) the
revenues from or arising in connection with the property,
facilities, developments and improvements whose financ-
ing is undertaken by issuance of the notes or bonds, (ii)
the revenues from or arising in connection with any con-
tracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of the notes or bonds,
(iii) the contracts, mortgages or other securities pur-
chased or otherwise acquired with the proceeds of the
notes or bonds, or (iv) any combination of (i), (ii) or
(iii).
C. Subsection (50) further authorizes the City to
authorize and empower the Board of Finance of the City
by resolution (i) to determine and set forth certain mat-
ters pertaining to the revenue notes and revenue bonds,
including (without limitation) the forms, terms, provi-
sions, manner or method of issuing and selling (including
negotiated as well as competitive bid sale), and the time
or times of issuance and any and all other details of such
revenue notes or revenue bonds, (ii) to do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such revenue notes of revenue
bonds, and (iii) to approve the form of a trust agreement
between the City and the trustee, which trust agreement
may (a) pledge or assign all or any part of the security
for such notes or bonds, (b) contain reasonable and
proper provisions for the protection and enforcement of
the rights and remedies of the holders of such notes or
bonds, (c) set forth the rights and remedies of the hold-
ORDINANCES 1463
ers of such notes or bonds and of the trustee and restrict
the individual rights of action by the holders of the notes
or bonds, and (d) contain whatever other provisions are
deemed reasonable and proper for the security of the
holders of such notes or bonds.
D. Subsection (51) and Subsection (50) are referred
to herein collectively as the ''Enabling Laws'*.
E. Subsection (51) declares, among other things, that
borrowing money thereunder by the issuance of revenue
notes or revenue bonds shall be for the essential public
purpose of (i) preserving a healthy and viable economy
within Baltimore, (ii) encouraging and facilitating the
creation or maintenance of a healthy and ready market
for residential real estate in Baltimore, including (with-
out limitation) the ready sale and purchase of existing
residential real estate and the purchase, acquisition, con-
struction, erection or development of buildings or struc-
tures for owner-occupied residential purposes, including
any land necessary therefor, within the boundaries of
Baltimore, (iii) encouraging and facilitating the pur-
chase of residential real property in Baltimore in order to
maintain and encourage growth in real property assess-
ments in Baltimore, and (iv) preserving the public health,
safety and welfare of the residents of Baltimore by en-
abling residents of Baltimore of all income levels to
finance readily their housing needs in Baltimore, thus
discouraging the proliferation of vacant and substandard
housing in Baltimore and retarding or reversing the
movement of financially self sufficient taxpayers to sur-
rounding subdivisions.
F. The Project Area of the Harlem Park Residential
Development Program shall be located in the City of Bal-
timore 700 and 800 blocks of North Carey Street, 1100
and 1200 blocks of West Lanvale Street, and the 1000,
1100 and 1200 blocks of West Lafayette Street. Consisting
of single family residential dwelling units including but
not limited to townhouse, condominiums, cooperatives, or
other residential structures,
G. As part of the development of the Harlem Park
Area, the City seeks to promote owner-occupied residen-
tial units within Baltimore and the Harlem Park Area
1464 ORDINANCES Ord. No. 476
offering a variety of good housing accommodations in an
attractive environment (such program as it may have
heretofore or may hereafter be amended, or supple-
mented or extended to other areas from time to time
called the ''Harlem Park Residential Development Pro-
gi-am").
H. Pursuant to the Harlem Park Residential Devel-
opment Program, the City proposes to provide necessary
construction financing as determined from time to time
(such program as it may have heretofore or may here-
after be amended, supplemented or extended to other
areas from time to time called the ''Harlem Park Resi-
dential Construction Loan Program" for developers and
builders (herein "developers"), and necessary long-term
mortgage financing (such program as it may have here-
tofore or may hereafter be amended, supplemented or
extended to other areas from time to time called "Harlem
Park Residential Mortgage Loan Program") for pur-
chasers (herein "mortgagors") of residential units in the
Project Area through several issues of the City's revenue
notes and revenue bonds.
L Pursuant to the Enabhng Laws, the City has deter-
mined to issue and sell in an amount not to exceed
$3,000,000, aggregate principal amount of its "Single-
Family Construction Mortgage Revenue Notes (Harlem
Park Loan Program)", (the "Notes") and to use the pro-
ceeds of the Notes to provide construction financing for
development of an o^\^ler-occupancy residential loan
program for the Harlem Park Residential Development
Program which loan program will include (without limi-
tation) the financing of construction loans for the
developer.
J. Pursuant to the Enabling Laws, the City has deter-
mined to issue and sell in an amount not to exceed
S3,700,000, aggregate principal amount of its "Single-
Family ^Mortgage Revenue Bonds (Harlem Park Loan
Program)", (the "Bonds") and to use the proceeds of
the Bonds, to develop an owner-occupancy residential loan
program for the Harlem Park Residential Development
Program, which loan program will include (without limi-
tation) the financing of mortgage loans for the Mort-
gagors.
ORDINANCES 1465
K. The City has determined to issue and sell the Notes
and the Bonds to effectuate the public purpose of (i) pre-
serving a healthy and viable economy within Baltimore,
(ii) encouraging and facilitating the creation or mainte-
nance of a healthy and ready market for residential real
estate in Baltimore, including (without limitation) the
ready sale and purchase of existing residential real estate
and the purchase, acquisition, construction, erection or
development of buildings or structures for owner-occu-
pied residential purposes, including any land necessary
therefor, within the boundaries of Baltimore, (iii) en-
couraging and facilitating the purchase of residential
real property in Baltimore in order to maintain and en-
courage growth in real property assessments in Balti-
more, and (iv) preserving the public health, safety and
welfare of the residents of Baltimore by enabling resi-
dents of Baltimore of all income levels to finance readily
their housing needs in Baltimore, thus discouraging the
prohferation of vacant and substandard housing in Balti-
more and retarding or reversing the movement of finan-
cially self sufficient taxpayers to surrounding subdivisions.
L. Pursuant to authority provided in Article XI-H of
the Constitution of Maryland and laws enacted pursuant
thereto, the City from time to time has general funds
available for use to make or contract to make or to guar-
antee or insure financial loans to any person or other
legal entity to be used for or in connection with the pur-
chase, acquisition, construction, erection or development
of buildings or structures, including any land necessary
therefor, within the boundaries of Baltimore, which build-
ings or structures are to be used or occupied for residen-
tial purposes. Pursuant to such authority, or as otherwise
may be permitted by applicable law, the City, acting
through the Department of Housing and Community
Development of the City and the Board of Estimates of
the City, may determine from time to time to make,
guarantee or insure financial loans in connection with the
owner-occupied residential units for the Project Areas to
supplement the proceeds of the Notes and Bonds to de-
velop the Harlem Park Residential Construction Loan
Program and the Harlem Park Residential Mortgage Loan
Program as an integral part of the Harlem Park Resi-
dential Development Program.
1466 ORDINANCES Ord. No. 476
M. The City has determined to use, in part, the pro-
ceeds of the Bonds to provide mortgage financing to the
purchasers of the owner-occupied residential units in the
Project Areas pursuant to the Inner Harbor Residential
Development Program by making loans to finance such
purchases.
Section 1. Be it ordained by Mayor and City Council
of Baltimore, That, acting pursuant to the Enabling Laws,
it is hereby found and determined, as follows :
(1) The issuance of revenue notes and revenue bonds by
the City pursuant to the Enabling Laws to develop the Har-
lem Park Residential Construction Loan Program and the
Harlem Park Residential ^Mortgage Loan Program each as
a part of the Harlem Park Residential Development Pro-
gram in Baltimore through the purchase, contracting to
purchase or other acquisition of mortgage loans (i) bearing
interest rates below those generally prevailing (at the
time of purchase or contract to purchase) in the private
mortgage market (to the extent such a market exists at
that time) for loans of comparable quality and terni in
Baltimore and (ii) having the terms and characteristics as
determined by this ordinance and the Board of Finance
acting pursuant to this ordinance, will encourage and facili-
tate the purchase of residential property in the Project
Area by residents of Baltimore of all income levels.
(2) The accomplishment of the transactions contem-
plated and authorized by this ordinance, including (without
limitation) the development of the Harlem Park Rseidential
Construction Loan Program and the Harlem Park Residen-
tial Mortgage Loan Program, will accomplish a public pur-
pose and meet existing public needs by (i) preserving a
healthy and viable economy within Baltimore, (ii) encour-
aging and facilitating the creation or maintenance of a
healthy and ready market for residential real estate in
Baltimore, including (without limitation) the ready sale and
purchase of existing residential real estate and the purchase,
acquisition, construction, erection or development of build-
ings or structures for owner-occupied residential purposes,
including any land necessary therefor, within the bounda-
ries of Baltimore City, (iii) encouraging and facilitating
the purchase of residential real property in Baltimore in
order to maintain and encourage growth in real property
ORDINANCES 1467
assessments in Baltimore, and (iv) preserving the public
health, safety and welfare of the residents of Baltimore by
enabling residents of Baltimore of all income levels to
finance readilj^ their housing needs in Baltimore, thus dis-
couraging the proliferation of vacant and substandard
housing in Baltimore and retarding or reversing the move-
ment of financially self sufficient taxpayers to surrounding
subdivisions.
(3) Neither notes or bonds nor interest coupons issued
under the authority of the Enabling Laws constitute (i) a
debt or general obligation of the City or any other political
subdivisions, or (ii) a pledge of or an involvement of the
faith and credit or the taxing powers of the City or any
other political subdivision, all within the meaning of Sec-
tion 7 of Article XI of the Constitution of Maryland or any
other constitutional, statutory or charter provision. The
principal of and interest on the Notes and Bonds shall be
payable from, and secured by, (i) an assignment of pay-
ments, proceeds, charges, rents and any other income or
payments (except certain escrow payments) to be derived
in cash by or for the account of the City from or related
to the Harlem Park Residential Construction Loan Program
and the Harlem Park Residential Mortgage Loan Program,
including (without limitation) payments (as determined by
resolution of the Board of Finance adopted pursuant to this
ordinance) of principal and interest on construction mort-
gage loans made by the City to the developer of owner-
occupied residential units in the Harlem Park Residential
Development Program and on mortgage loans made by the
City to Mortgagors (all such income or payments called the
"Revenue Note and Bond Loan Program Revenues") and
(ii) (to the extent provided by resolution of the Board of
Finance adopted pursuant to this ordinance) proceeds of
the Notes and Bonds. The principal of and interest on the
Notes shall be secured by (without limitation) construction
mortgages from the developer in connection with the Har-
lem Park Residential Construction Loan Program (the
"Construction Mortgages"). The principal of and interest on
the Bonds shall be secured by (without limitation) mort-
gages from Mortgagors in connection with the Harlem Park
Residential Mortgage Loan Program (the "Unit i\Iort-
gages"). The Notes and Bonds may be additionally secured
(without in any way specifying or limiting the terms of
1468 ORDINANCES Ord. No. 476
such additional security) by (i) insuring all or a part of
the Unit Mortgages by private mortgage insurance pro-
vided by one or more private mortgage insurers selected by
the Board of Finance; or (ii) insuring all or a part of the
Unit Mortgages through the Maryland Housing Fund or
such other Federal, State or municipal funds or other
agency permitted by applicable law to perform such insur-
ing functions; or (iii) assigning the proceeds of the mort-
gage insurance to the trustee for the holders of the Notes
and Bonds (the ''Bondholders') ; or (iv) such other security
as the Board of Finance may by resolution approve; or (v)
any combination of (i), (ii), (iii) and (iv).
The principal amount of the Notes and Bonds will be paid
directly to, and will be disbursed by, the independent
trustee or trustees appointed by the Board of Finance pur-
suant to this ordinance (the "Trustee"). No such moneys
will be either commingled with the City's general funds or
made subject to the absolute control of the City, except for
such limited supervision and checks as are deemed necessary
or desirable by the City to insure that the proceeds of the
Notes and Bonds are used to accomplish the public purposes
of the Enabling Laws and this ordinance. The Revenue Note
and Bond Loan Program Revenues, in the case of con-
struction financing for the developer, will be paid by the
developer to the Trustee as services for the (Construction
Mortgages or as Trustee for the Harlem Park Residential
Construction Loan Program, as stipulated in the construc-
tion loan agreement or agreements to be entered into by
the City with an agent, or agents, for construction loan
servicing of the Construction ^Mortgages. The Revenue Note
and Bond Loan Program Revenues, in the case of financing
for Mortgagors, will be paid by the ^Mortgagors to the mort-
gage servicer or servicers for the Harlem Park Residential
Mortgage Loan Program, as stipulated in the servicing
agreement or agreements to be entered into by the City
with a servicing agent or agents for the Unit ^Mortgages,
and the Revenue Note and Bond Loan Program Revenues,
less the servicing fee to be approved by the Board of
Finance, shall be paid by such servicer to the Trustee. The
transactions authorized hereby do not constitute a public
improvement or a capital project within the meaning of any
charter or statutory provision. The public purposes ex-
pressed in this ordinance are intended to be achieved by
ORDINANCES 1469
providing residential low and moderate cost mortgage con-
struction loans to the developer of the Harlem Park Resi-
dential Development Program and residential low and
moderate cost mortgage loans to the Mortgagors, each with-
in Baltimore; preserving a healthy economy within Balti-
more ; fostering a healthy market for residential real estate
in Baltimore; fostering the purchase of residential real
property in Baltimore and providing affordable housing
within Baltimore, thus discouraging the movement of tax-
payers to surrounding subdivisions.
Sec. 2. And be it further ordained, That, the issuance,
sale and delivery of not exceeding $3,000,000, aggregate
principal amount of revenue notes, hereby designated
"Single-Family Construction Mortgage Revenue Notes
(Harlem Park Loan Program)", and the issuance, sale and
delivery of not exceeding S3,700,000, aggregate principal
amount of revenue bonds, hereby designated "Single-
Family Mortgage Revenue Bonds (Harlem Park Loan Pro-
gram)" are hereby authorized, subject to the provisions of
this ordinance, the proceeds to be used to develop the Har-
lem Park Residential Construction Loan Program and the
Harlem Park Residential Mortgage Loan Program as a part
of the Harlem Park Residential Development Program, all
as set forth in this ordinance. In addition to the disburse-
ment of Note and Bond proceeds for construction loans and
mortgage loans under the Harlem Park Residential Con-
struction Loan Program and the Harlem Park Residential
Mortgage Loan Program, Note and Bond proceeds may be
disbursed (without limitation) (i) with respect to construc-
tion loans, to pay all costs of planning, development and
construction of the owner-occupied residential units for the
Harlem Park Residential Development Program including
(without limitation) architect's and engineers' fees and
expenses, commitment fees, title insurance and recordation
fees and taxes, land costs, land development costs, interest
during the construction period, construction materials and
equipment, construction contracting services and payment
and performance bonds, (ii) to pay the cost of issuance and
sale of the Notes and Bonds, including (without limitation)
costs of printing Notes and Bonds, the official statement and
other legal documents, costs of delivery of the Notes and
Bonds, commitment fees, legal fees, accounting fees, under-
1470 ORDINANCES Ord. No. 476
writing costs, advertising costs, costs of rating agency re-
views and all other incidental related expenses and (iii) (to
the extent provided by resolution of the Board of Finance
adopted pursuant to this ordinance) to fund a debt service
reserve or other reserve funds for the Notes and Bonds.
The Notes and Bonds shall be solely and exclusively payable
from the Revenue Note and Bond Loan Program Revenues
and (to the extent provided by resolution of the Board of
Finance adopted pursuant to this ordinance) certain Note
and Bond proceeds. The Notes and Bonds shall be secured
(to the extent provided by resolution of the Board of
Finance adopted pursuant to this ordinance) by (without
limitation) the Construction ^Mortgages and the Unit Mort-
gages. The Board of Finance may require, however, that the
Notes and Bonds be additionally secured by (i) insuring the
Construction Mortgages and Unit ^Mortgages through pri-
vate mortgage insurance provided by one or more private
mortgage insurers selected by the Board of Finance; or
(ii) insuring the Construction Mortgages and Unit Mort-
gages through the Maryland Housing Fund or such Federal,
State, or municipal fund or other agency permitted by
applicable law to perform such insuring functions; or (iii)
assigning the proceeds of the mortgage insurance to the
Trustee for the Bondholders ; or (iv) such other security as
the Board of Finance may approve; or (v) any combination
of (i), (ii), (iii) and (iv). The aggregate principal amount
of Notes issued, sold and delivered pursuant to this ordi-
nance shall not exceed S3, 000, 000, and the aggregate princi-
pal amount of the Bonds issued, sold and dehvered pursuant
to this ordinance shall not exceed $3,700,000, unless such
amount or amounts, in each case, shall be increased by an
ordinance of the City supplemental hereto. The City con-
templates that, because of inflation and other factors which
may occur during the development and construction periods
of the Project Area, the City will amend or supplement this
ordinance from time to time to increase such amounts or
otherwise to provide for matters affecting the Harlem Park
Residential Development Program. Nothing in this ordi-
nance is intended or shall be deemed to exclude the issuance
of refunding bonds to refund all or a portion of the Notes
or Bonds, and the adoption of a subsequent ordinance or
ordinances for such purpose is expressly contemplated by
this ordinance.
ORDINANCES 1471
In accordance with the Enabhng Laws, the City hereby
authorizes the Board of Finance, unless the City shall other-
wise prescribe prior to the issuance and delivery of the
Notes or Bonds, by resolution to take the following actions
and to make the following commitments on behalf of the
City:
(a) to determine and set forth the form, terms, pro-
visions (including redemption provisions and sinking fund
requirements, if any), manner or method of issuing and
selling (including negotiated or competitive bid sale) and
the time or times of issuance and any and all other details
of the Notes and Bonds ;
(b) to determine and set forth the form, terms and pro-
visions of construction loan agreements, servicing agree-
ments and all other construction and mortgage loan and
all other documents in connection with the Notes and
Bonds ;
(c) to prepare and distribute, in conjunction with the
prospective underwriters or placement agents, if any, for
the Notes and Bonds, preliminary and final official state-
ments or placement memoranda or circulars as the Board
of Finance deems necessary and appropriate in connection
with the sale of the Notes and Bonds; provided, however,
that any such preliminary official statements or placement
memoranda or circulars shall be clearly marked to indicate
that they are subject to completion and amendment;
(d) to determine the dates, times and places when an
underwriting or placement agreement or purchase contract
shall be submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds, such underwriting or placement agreement or pur-
chase contract to specify the interest rate or rates proposed
to be paid on the Notes and Bonds, the price at which such
Notes and Bonds are to be sold to such underwriters, place-
ment agents or purchasers, and such other matters as the
underwriters, placement agents or purchasers and the
Board of Finance may deem necessary or desirable in order
to effect the sale and delivery of the Notes and Bonds ;
(e) to determine the interest rate or rates to be paid by
the City on the Notes and Bonds in accordance with the
proposed underwriting or placement agreement or purchase
1472 ORDINANCES Ord. No. 476
contract submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds ;
(f ) to appoint, as the Board of Finance deems necessary
and appropriate, a bank having trust powers, or a trust
company, as trustee for the Notes and Bonds to be issued
pursuant to this ordinance ; and
(g) to approve the form of trust agreements between
the City and the Trustee, which trust agreements may (i)
pledge or assign all or any part of the security of the Notes
and Bonds, (ii) contain reasonable and proper provisions
for the protection and enforcement of the rights and reme-
dies of the Bondholders, (iii) set forth the rights and
remedies of the Bondholders and the Trustee and may re-
strict the individual right of action by the Bondholders,
and (iv) contain whatever other provisions are deemed
reasonable and proper for the security of the Bondholders.
The Board of Finance shall perform any and all actions
necessary or deemed appropriate by such Board in order to
effect the issuance and sale of the Notes and Bonds in
accordance with and pursuant to this ordinance and the
underwriting or placement agreements or purchase con-
tracts for the Notes and Bonds.
The Notes and Bonds shall be dated as of the first day of
the month next following the date on which the Notes and
Bonds are sold unless the Board of Finance shall specify a
different date by a resolution adopted pursuant to this ordi-
nance, and the Notes and Bonds shall bear interest at an
annual rate or rates payable semi-annually following the
date of the Notes and Bonds so that, if the Notes and Bonds
are dated October 1, 1981, interest on the Notes and Bonds
will be payable on March 1, 1982 and semi-annually there-
after each October 1 and March 1 unless the Board of
Finance shall specify more frequent or different dates by a
resolution adopted pursuant to this ordinance.
The Notes and Bonds issued hereunder shall mature on
the date or dates provided in a resolution of the Board of
Finance adopted pursuant to this ordinance, but the last
maturity of each series of Notes shall in no event exceed a
period of five (5) years from the date of such series of
Notes and the last maturity of each series of the Bonds
ORDINANCES 1473
shall in no event exceed a period of forty (40) years from
the date of such series of Bonds. If the resolution of the
Board of Finance does not provide any maturity or maturi-
ties for the Notes, all of the Notes of a series shall mature
on the date five (5) years from the date of such series of
Notes. For example, if the Note is dated September 30,
1981, all of the Notes of such series will mature (in the
absence of a resolution of the Board of Finance determining
otherwise) on September 30, 1986. If the resolution of the
Board of Finance does not provide any maturity or maturi-
ties for the Bonds, all of the Bonds of a series shall mature
on the date thirty-two (32) years from the date of such
series of the Bonds. For example, if the Bond is dated Sep-
tember 30, 1981, all the Bonds of such series will mature
(in the absence of a resolution of the Board of Finance
determining otherwise) on September 30, 2013.
Sec. 3. And be it further ordained, That, prior to the sale
of the Notes and Bonds, the Board of Finance, unless the
City shall otherwise prescribe, may determine by resolu-
tion:
(1) the provisions of trust between the City and the
Trustee ;
(2) the manner of execution, authentication, registra-
tion and transfer of the Notes and Bonds ;
(3) provisions for authentication and delivery of the
Notes and Bonds ;
(4) the provisions of the Harlem Park Residential Con-
struction Loan Program and of the Harlem Park Residen-
tial Mortgage Loan Program, including (i) the terms of the
construction loans and of the Construction Mortgages ac-
quired under the Harlem Park Residential Construction
Loan Program, (ii) the terms of the mortgage loans and of
the Unit Mortgages acquired under the Harlem Park Resi-
dential Mortgage Loan Program, and (iii) the terms of any
servicing agreement between the City and a mortgage ser-
vicer for the Construction Mortgages and the Unit Mort-
gages;
(5) the terms of the private insurance, public insurance
or other security for the Notes and Bonds ;
1474 ORDINANCES Ord. No. 476
(6) provisions for creation, holding and disbursement
of a construction loan and a program fund to be held by
the Trustee ;
(7) provisions for creation, holding and disbursement
of any other funds and accounts to be held by the Trustee;
(8) provisions for the application of the Revenue Note
and Bond Loan Program Revenues ;
(9) provisions for the security for and investment of
moneys held by the Trustee ;
(10) the details of the procedure for the redemption of
the Notes and Bonds ;
(11) remedies for Bondholders in the event of default;
(12) the duties, rights and immunities of the Trustee;
(13) the manner of execution of instruments by Bond-
holders and the method of proof of ownership of the Notes
and Bonds ;
(14) provisions for m.odification of this ordinance;
(15) provisions for defeasance of the Notes and Bonds;
(16) the forms of the Notes and Bonds, coupons and the
Trustee's authentication certificate ; and
(17) such other matters in connection with the authori-
zation, issuance, security, sale and payment of the Notes and
Bonds as may be deemed appropriate by the Board of
Finance.
Any resolution or resolutions adopted pursuant to this
ordinance shall be deemed to be of an administrative nature.
Sec 4. And be it further ordained, That, the Board of
Finance may approve the issuance of the Notes and Bonds
in one or more series from time to time as the Board of
Finance by resolution adopted pursuant to this ordinance
deems necessary or appropriate in connection with the
schedule, as amended from time to time, of the Harlem Park
Residential Development Program. It is hereby declared
that singular terms shall include the plural and plural the
singular so that each provision of this ordinance shall apply
to each series of Notes and Bonds.
ORDINANCES 1475
Sec. 5. And be it further ordained, That Mayor and City
Council may amend this ordinance from time to time as
necessary and appropriate to increase the authorization for
revenue notes and revenue bonds for the Harlem Park Resi-
dential Development Program for increased costs or other
changes in the Harlem Park Residential Development Pro-
gram for the Project areas, or otherwise.
Sec. 6. And he it further ordained, That, if any action or
any matter delegated to the Board of Finance, or authorized
for implementation by the Board of Finance, shall not be
acted upon by the Board of Finance, such actions and mat-
ters may be acted upon or implemented by a resolution
approved by the City Council of the City, which is subse-
quently approved by the Mayor or acting Mayor of the City.
Sec. 7. And be it further ordained, That, the provisions
of the ordinance are severable, and if any provision, sen-
tence, clause, section or part thereof is held illegal, invalid
or unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity or unconstitutionality, or
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
ordinance or its applications to other persons or circum-
stances. It is hereby declared to be the legislative intent
that this ordinance would have been adopted if such illegal,
invalid or unconstitional provision, sentence, clause, section
or part had not been included therein, and if the person or
circumstances to which this ordinance or any part thereof
is inapplicable had been specifically exempted therefrom.
Sec. 8. And be it further ordained, That, this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
1476 ORDINANCES Ord. No. 477
No. 477
(Council No. 853)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
OXFORD— GREENSPRING
ASSOCIATES
FOR the purpose of authorizing and empowering Mayor and
City Council of Baltimore to issue and sell, at any time or
from time to time and in one or more series, as limited
obligations of the City and not upon its full faith and
credit, its industrial development revenue bonds, in the
aggregate principal amount not to exceed $6,250,000, pur-
suant to the provisions of Sub-section (50) of Article II
of the Charter of Baltimore City (1964 Revision, as
amended) , for the sole and exclusive purpose of financing
the costs, charges, fees and expenses in connection with
the acquisition by Oxford — Greenspring Associates of cer-
tain real property in Baltimore City together with any im-
provements located thereon, and the construction, recon-
struction, renovation, and/or rehabilitation of improve-
ments which will be owned by Oxford — Greenspring As-
sociates and used as rental dwelling units, and to provide
long term financing of the land and improvements; au-
thorizing the Mayor of the City, on behalf of the City, to
accept the letter of intent dated October 12, 1981, from
Oxford — Greenspring Associates to the City, making cer-
tain legislative findings ; authorizing and empowering the
Board of Finance of the City, by a resolution or resolu-
tions adopted prior to the issuance, sale and delivery of
any series of such bonds, to (a) prescribe, among other
things but not limited to, the form, terms, provisions,
manner or method of issuing and selling (including nego-
tiated as well as competitive bid sale), and the time or
times of issuance, and any and all other details of such
bonds, and (b) do any and all things necessary, proper or
expedient in connection with the issuance and sale of such
bonds ; providing that Oxford — Greenspring Associates
shall agree to submit any plans and specifications to, and
to coordinate with, the Department of Housing and Com-
munity Development in connection with the completion of
such project; providing that such bonds (or anticipation
ORDINANCES 1477
notes issued in anticipation of the issuance of such bonds)
must be issued and sold within six months from the date
this Ordinance is approved by the Mayor, unless the
Board of Finance approves one six month extension as
provided in this Ordinance; authorizing the issuance of
notes in anticipation of the issuance of such revenue
bonds; generally providing for and determining various
matters and details in connection with the issuance and
sale of such bonds and bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Baltimore
City (1964 Revision, as amended) (the ''Enabling Law") ,
empowers the Mayor and City Council of Baltimore (the
*'City") to borrow money to finance undertakings for the
accomplishment of any of the purposes, objects and
powers of the City and in connection therewith to issue
bonds, notes, or other obligations (including refunding
bonds, notes or other obligations), all of which shall be
fully negotiable, payable, as to both principal and inter-
est, solely from and secured solely by a pledge of (I) the
revenues from or arising in connection with the property,
facilities, developments and improvements whose financ-
ing is undertaken by the issuance of such bonds, notes or
other obligations, (II) the revenues from or arising in
connection with any contracts, mortgages or other secu-
rities purchased or otherwise acquired with the proceeds
of such bonds, notes or other obligations, (III) the con-
tracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of such bonds, notes or
other obligations, or (IV) any combination of (I), (II)
or (III). The purposes, objects and powers of the City
contemplated by the Enabling Law includes the relief of
conditions of unemplojanent in Baltimore City, encourag-
ing the increase of industry and a balanced economy in
Baltimore City, promoting economic development in Balti-
more City, and promoting the health, welfare safety of
the residents of Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the "Letter of Intent") from Oxford— Green-
spring Associates (the "Borrower"), pursuant to which
the Borrower has requested the City to participate in the
financing of the costs of the acquisition and/or develop-
1478 ORDINANCES Ord. No. 477
ment by the Borrower of a certain project in Baltimore
City, Maryland (the ''Project") , by issuing and selling the
City's industrial development revenue bonds in the ag-
gregate principal amount not to exceed $6,250,000, (the
''Bonds") , and by making the proceeds of the Bonds avail-
able to the Borrower to be used by the Borrower for the
sole and exclusive purpose of financing the costs of the
acquisition and/or development of the Project by the
Borrower.
The Project, which is an ''undertaking" which will ac-
complish the purposes, objects and powers of the City as
mentioned in the Enabling Law, will consist generally of
(a) the acquisition by the Borrower of certain real prop-
erty located at Greenspring and Grantley Avenues in the
Park Heights Urban Renewal Area for use as rental
dwellings, (b) the renovation, rehabilitation, construc-
tion, and/or reconstruction of any existing improvements
which will be owned and operated by the Borrower, and
(c) the long term financing of the land and improve-
ments. The Borrower anticipates that the units will be
leased to various tenants w^hose identities are unknown at
this time.
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
"Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing and
selling (including negotiated as well as competitive bid
sale) , and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper or
expedient in connection with the issuance and sale of the
Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the Enabling Law, it
is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City pur-
suant to the Enabling Law in order to make the proceeds
thereof available to the Borrower for the sole and exclusive
ORDINANCES 1479
purpose of financing the cost of acquisition and/or develop-
ment of the Project will facilitate and expedite the acquisi-
tion and/or development of the Project by the Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such ac-
quisition and/ or development as provided in this ordinance
will serve to promote the general purposes contemplated by
the Enabling Law (a) sustaining jobs and employment in
Baltimore City; (b) promoting economic development in
Baltimore City; and (c) encouraging the increase of indus-
try and a balanced economy in Baltimore City.
(3) Any and all of the Bonds shall not be general obli-
gations of the City and shall not be a pledge of or involve
the faith and credit or the taxing power of the City, and
shall not constitute a debt of the City, all within the mean-
ing of Section 7 of Article XI of the Constitution of Mary-
land or within the meaning of any other constitutional, sta-
tutory or charter provision limiting or restricting the sale
or issuance of bonds, notes or other obligations of the City.
All of the Bonds shall be limited obligations of the City, and
shall be fully negotiable, payable, as to both principal and
interest, solely from and secured solely by a pledge of (I)
the revenues from or arising in connection with the Project,
(II) the revenues from or arising in connection with any
contracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of the Bonds, (III) the con-
tracts, mortgages or other securities purchased or otherwise
acquired with the proceeds of the Bonds, or (IV) any com-
bination of (I), (II) or (III), all as the Board may approve
by a resolution or resolutions adopted prior to the issuance,
sale and delivery of any of the Bonds.
Sec. 2. A7id be it further ordained, That the City is hereby
authorized and empowered to issue and sell, at any time or
from time to time and in one or more series, as limited obli-
gations of the City and not upon its full faith and credit, its
industrial development revenue bonds, in the aggregate
principal amount not to exceed $6,250,000, subject to the
provisions of this Ordinance. The proceeds of the Bonds will
be made available to the Borrower under terms and condi-
tions approved by the Board and set forth in a Resolution,
and used by the Borrower for the sole and exclusive pur-
1480 ORDINANCES Ord. No. 477
pose of financing the costs of the acquisition and/or develop-
ment of the Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept the
Letter of Intent on behalf of the City in order to further
evidence the present intent of the City to issue the Bonds in
accordance with the terms and provisions of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted by
the Enabling Law, the Board is hereby authorized and em-
powered, by a resolution or resolutions adopted prior to the
issuance, sale and delivery of any of the Bonds, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of the Bonds and the issuance and sale thereof :
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
(ii) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such pro-
visions in any such trust agreement or similar agreement
as the Board may deem reasonable and proper for the secu-
rity of the holders of the Bonds ;
(c) approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the Bor-
rower to finance the costs of the acquisition and/or develop-
ment of the Project; and
(d) do any and all things necessary, proper or expedient
in connection with the issuance, sale and delivery of the
Bonds.
Sec. 5. And be it further ordained. That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a debt
ORDINANCES 1481
of the City, all within the meaning of Section 7 of Article
XI of the Constitution of Maryland or any other constitu-
tional, statutory or charter provision limiting or restricting
the sale or issuance of bonds, notes or other obligations of
the City, and shall be fully negotiable, payable, as to both
principal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the Project, (ii) the revenues from or arising in con-
nection with any contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of the
Bonds, (III) the contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of the
Bonds, or (IV) any combination of (I), (II) or (III), all
as the Board may approve by a resolution or resolutions
adopted prior to the issuance, sale and delivery of any of
the Bonds.
Sec. 6. And be it further ordained, That the Borrower
shall agree that :
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community De-
velopment for approval, and that the Department of Hous-
ing and Community Development may refuse approval of
any plans and specifications for aesthetic or functional
reasons ; and
(b) it and its developers will work with the design ad-
visory group appointed by the Department of Housing and
Community Development in order to achieve high quality
site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and on
its behalf by the Mayor of the City, by his manual or fac-
simile signature, and by the Director of Finance of the City,
by his manual or facsimile signature, and the corporate seal
of the City or a facsimile thereof shall be impressed or
otherwise reproduced thereon and attested by the Custodian
or Alternate Custodian of the City Seal, by his/her manual
signature. Any trust agreement or other documents as the
Board shall deem necessary to effectuate the issuance, sale
and delivery of the Bonds shall be executed in the name of
the City and on its behalf by the Mayor of the City by his
1482 ORDINANCES Ord. No. 477
manual or facsimile sigiiature, and the corporate seal of the
City and on its behalf by the Mayor of the City by his
manual or facsimile signature, and the corporate seal of the
Seal or a facsimile there shall be impressed or otherwise re-
produced thereon an attested by the Custodian or Alternate
Custodian of the City Seal by his her manual signature. In
case any officer whose signature or a facsimile of whose sig-
natiu'e shall appear on the Bonds or any of the aforesaid
documents shall cease to be such officer before the delivery
of the Bonds or any of the other aforesaid documents, such
signatures or such facsimile shall nevertheless be valid and
sufficient for all purposes, the same as if such officer had
remained in office until delivery. The ]\Iayor of the City, the
Director of Finance of the city, the Custodian and the Alter-
nate Custodian of the City Seal and other officials of the
City are hereby authorized and empowered to do all such
acts and things and execute such documents and certificates
as the Board may determine by resolution to be necessary to
carry out and comply with the provisions hereof.
Sec. 8. And be it further ordained, That any and all
necessary financing statements required for the consumma-
tion of the transactions authorized by this Ordinance may
be executed on behalf of the City by the Mayor of the City
or by such other appropriate official of the City as may be
designated by the Mayor of the City to execute such financ-
ing statements.
Sec. 9. And be it further ordained. That the authority to
issue the Bonds is intended and shall be deemed to include
the authority to issue bond anticipation notes pursuant to
Section 12 of Article 31 of the Annotated Code of Maryland
(1976 Replacement Volume and 1980 Cumulative Supple-
ment), as amended (the ''Bond Anticipation Note Enabling
Legislation"). Reference in this Ordinance to the ''Bonds'*
shall include such bond anticipation notes where appropri-
ate. Prior to the issuance, sale and delivery of any series of
bond anticipation notes, the Board shall adopt a resolution
or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
ORDINANCES 1483
other details of such bond anticipation notes and the issu-
ance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agreement,
as provided in the Enabling Law, and (iii) such provisions
in any such trust agreement or similar agreement as the
Board may deem reasonable and proper for the security of
the holders of such bond anticipation notes ;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document to
be executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of such bond anticipation notes will be made
available to the Borrower to finance the costs of the acquisi-
tion and/or development of the Project; and
(d) do any and all things necessary, proper or expedient
in connection with the issuance, sale and delivery of such
bond anticipation notes. In accordance with the Bond An-
ticipation Note Enabling Legislation, the City hereby cove-
nants to pay any bond anticipation notes issued pursuant to
this Section of this Ordinance and the interest thereon from
the proceeds of the Bonds in anticipation of the sale of
which such notes are issued, and the City hereby further
covenants to issue such Bonds, as the case may be, when, as
soon as, the reason for deferring the issuance of the Bonds
no longer exists. The timely issuance of such Bonds, how-
ever, is dependent upon matters not within the control of
the City, including (without limitation) the existence of a
purchaser or purchasers for such Bonds at the time the
reason for deferring the issuance of the Bonds no longer
exists and the effectiveness of various actions taken by the
Borrower, its officers, agents and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid or
unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity or unconstitutionality, or
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
Ordinance or their application to other persons or circum-
1484 ORDINANCES Ord. No. 477
stances. It is hereby declared to be the legislative intent that
this Ordinance would have been passed if such illegal, in-
valid or unconstitutional provision, sentence, clause, section
or part had not been included herein, as if the person or
circumstances to which this Ordinance or any part hereof
are inapplicable had been specifically exempted herefrom.
Sec. 11. And be it further ordained, That either the bonds
or bond anticipation notes issued pursuant to Section 9 of
this Ordinance in anticipation of the issuance of the Bonds
must be issued and sold within six months from the date
on which this Ordinance is approved by the Mayor of the
City ; provided, however, that the Board, after a showing of
good cause at a public hearing held before the Board prior
to or after the expiration of such six month period, may ex-
tend the period during which either the Bonds or such bond
anticipation notes may be issued and sold for one additional
term not to exceed six months from the date on which the
first six month period expired. The Board, in its sole discre-
tion, and without action by the City Council, shall deter-
mine the sufficiency, or lack thereof, of the reasons pre-
sented for any requested extension of the six month period.
To the extent that neither the Bonds or such bond anticipa-
tion notes are issued and sold within twelve months from
the date on which this Ordinance is approved by the Mayor
of the City, the authority provided in this Ordinance for the
City to issue and sell the Bonds and such bond anticipation
notes shall expire.
Sec. 12. And he it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
ORDINANCES 1485
No. 478
(Council No. 855)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
FEDERATED HOTEL CORPORATION PROJECT
FOR the purpose of authorizing and empowering Mayor and
City Council of Baltimore to issue, sell and deliver, at any
time or from time to time, and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, to
be designated "Baltimore City, Maryland, Industrial De-
velopment Revenue Bonds (Federated Hotel Corporation
Project)", in the aggregate principal amount not to ex-
ceed $10,000,000, pursuant to the provisions of Sub-
section (50) of Article II of the Charter of Baltimore City
(1964 Revision), as amended, for the sole and exclusive
purpose of financing the costs, charges, fees and expenses
in connection v^ith (a) the remodeling and modernization
of the Lord Baltimore Hotel in Baltimore City, (b) the
acquisition and installation of captial improvements,
equipment and furnishings, and (c) such other improve-
ments, utilities and site v^ork as may be advisable to
realize the benefits hereof; authorizing the Mayor of the
City to accept, on behalf of the City, the letter of intent
of Federated Hotel Corporation to the City dated October
12, 1981; making certain legislative findings; authorizing
and empowering the Board of Finance of the City, prior
to the issuance, sale and delivery of such bonds, to adopt
a resolution pursuant to which the Board of Finance shall
(a) prescribe, among other things, but not limited to, the
form, terms, provisions, manner or method of issuing and
selling, and the time or times of issuance, and any and all
other details of such bonds, and (b) do any and all things
necessary, proper or expedient in connection with the
issuance and sale of such bonds; authorizing the private
(negotiated) sale of such bonds; providing that Fed-
erated Hotel Corporation shall agree to submit any plans
and specifications to, and to coordinate v^ith, the Depart-
ment of Housing and Community Development in connec-
tion with the acquisition of such real property and the
1486 ORDINANCES Ord. No. 478
renovation of the existing improvements located thereon ;
providing that, except under certain circumstances, if
such bonds are not issued and sold within one year after
the date on which this Ordinance is approved by the
Mayor of the City, the authorization provided in this
Ordinance for the City to issue and sell such bonds shall
expire ; and generally providing for and determining vari-
ous matters and details in connection with the authoriza-
tion, issuance, security, sale and payment of such bonds.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision), as amended (the "Enabling
Law"), empowers Mayor and City Council of Baltimore
(the "City") to issue revenue bonds and to use the pro-
ceeds of the sale of such revenue bonds to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City. Some of the general objec-
tives of the City, contemplated by the Enabling Law, in-
clude the relief of conditions of unemployment in Balti-
more City, encouraging the increase of industry and a
balanced economy in Baltimore City, promoting economic
development in Baltimore City, and promoting the health,
welfare and safety of the residents of Baltimore City.
The City has received a letter of intent dated October
12, 1981 (the "Letter of Intent") from Federated Hotel
Corporation, a Maryland corporation (the "Borrower"),
pursuant to which the Borrower has requested the City to
participate in the financing of the costs, charges, fees and
expenses in connection with the modernization by the
Borrower of certain real property and improvements
located in Baltimore City known as the Lord Baltimore
Hotel, the acquisition and installation of capital improve-
ments, equipment, and furnishings, and such other im-
provements, utilities and site work as may be advisable
(the "Project") , by issuing and selling industrial develop-
ment revenue bonds of the City in the aggregate principal
amount not to exceed $10,000,000 and by loaning the pro-
ceeds of the revenue bonds to the Borrower, upon the
terms and conditions of a loan agreement to be entered
into between the City and the Borrower (the "Loan
ORDINANCES 1487
Agreement"), as permitted by the Enabling Law (such
loan being herein referred to as the **Loan") .
The Loan Agreement will require the Borrower (a) to
use the proceeds of the revenue bonds solely to finance the
completion of the Project, and (b) to make Loan pay-
ments which will be sufficient to enable the City to pay
the principal of, and interest and premium, if any, on the
revenue bonds when and as the same shall become due
and payable.
As security for the revenue bonds, the City will enter
into either (a) a trust agreement (the 'Trust Agree-
ment") with a corporate trustee (the ^Trustee") to be
appointed by the Board of Finance of the City (the
"Board") or (b) an Assignment and Security Agreement
(the "Assignment") with the original purchaser of the
revenue bonds (the "Original Purchaser"), and a trustee
(which may be the Original Purchaser) (the "Project
Fund Trustee") . Pursuant to the Trust Agreement or the
Assignment, the City will assign to the Trustee or, if the
Assignment is entered into, the Original Purchaser, its
successors and assigns, (among other things) (a) all of
the City's right, title and interest in and to and remedies
under the Loan Agreement, including (without limita-
tion) any and all security referred to therein, excepting
only the right of the City to indemnification by the Bor-
rower and to payments to the City for expenses incurred
by the City itself, (b) the receipts and revenues of the
City from the Loan, (c) certain moneys which are at any
time or from time to time on deposit with the Trustee or
the Project Fund Trustee, (d) all right, title and interest
in and to and remedies with respect to any and all other
property of every description and nature from time to
time by delivery or by writing of any kind conveyed,
pledged, assigned or transferred, as and for additional
security for the revenue bonds, by the City or by anyone
on its behalf or with its written consent, to the Trustee,
or, if the Assignment is entered into, the Original Pur-
chaser, its successors or assigns, and (e) all of the City's
right, title and interest in and to and remedies under such
other documents, including (without limitation) mort-
gages, deeds of trust, guaranties and security instru-
ments, as the Board shall deem necessary to effectuate the
1488 ORDINANCES Ord. No. 478
issuance, sale and delivery of the revenue bonds and
which the Board shall approve by a resolution or resolu-
tions (the "Resolution") to be adopted by the Board prior
to the issuance, sale and delivery of any of the revenue
bonds. If the Board finds and determines, pursuant to the
Resolution, that the Project will be completed on or before
the date of delivery of the revenue bonds, the Board may
provide in the Resolution that (a) the Project Fund
Trustee is not necessary, and (b) if the Assignment is
entered into, the City will enter into the Assignment with
only the original purchaser of the revenue bonds.
The revenue bonds will be sold at a private (negotiated)
sale.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW :
Section 1. Be it ordained by the Mayor and City Council
of Baltimore, That acting pursuant to the Enabling Law, it
is hereby found and determined as follows :
(1) The issuance and sale of the revenue bonds by the
City pursuant to the Enabling Law in order to lend the pro-
ceeds thereof to the Borrower for the sole and exclusive
purpose of financing the costs of the Project will facilitate
and expedite the completion of the Project by the Borrower.
(2) The completion of the Project by the Borrower and
the financing thereof as provided in this Ordinance will
serve to promote the general purposes contemplated by the
Enabling Law by (a) sustaining jobs and employment in
Baltimore City; (b) promoting economic development in
Baltimore City; and (c) encouraging the increase of indus-
try and a balanced economy in Baltimore City, and (d) in-
creasing the tax base of the City.
(3) Neither the revenue bonds nor the interest thereon
shall ever constitute a pledge of or involve the faith and
credit or the taxing power of the City, and neither shall ever
constitute a debt of the City within the meaning of Section 7
of Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or re-
stricting the sale or issuance of bonds, notes or other obliga-
tions of the City, and neither shall ever constitute or give
ORDINANCES 1489
rise to any pecuniary liability of the City. The revenue bonds
and the interest thereon shall be limited obligations of the
City, repayable by the City solely from the revenue derived
from Loan repayments (both principal and interest) made
to the City by the Borrower on account of the Loan and from
any other moneys made available to the City for such pur-
pose. The proceeds of the revenue bonds will be paid directly
to the Trustee or the Project Fund Trustee to be held and
disbursed by the Trustee as provided in the Trust Agree-
ment or by the Project Fund Trustee as provided in the
Assignment to be approved by the Board in the Resolution,
provided, however, that if the Board finds and determines,
pursuant to the Resolution, that the Project will be com-
pleted on or before the date of delivery of the revenue bonds,
the Board may provide in the Resolution that the proceeds
of the revenue bonds will be paid directly to the Borrower,
or for the account of the Borrower, to be used by the Bor-
rower to pay the costs of, or to reimburse the Borrower for
the payment of the costs of, the completion of the Project, as
provided in the Assignment to be approved by the Board in
the Resolution. Payments of the principal of and premium
(if any) and interest on the Loan will be paid by the Bor-
rower directly to the Trustee as provided in the Trust
Agreement or to the Original Purchaser, its successors and
assigns, as provided in the Assignment, to be approved by
the Board in the Resolution. No such moneys will be com-
mingled with the City's funds or will be subject to the abso-
lute control of the City, but will be subject only to such
limited supervision and checks as are deemed necessary or
desirable by the City to insure that the proceeds of the rev-
enue bonds are used to accomplish the public purposes of the
Enabling Law and this Ordinance. The loan form of trans-
action authorized hereunder shall in no event constitute a
capital project within the meaning of any charter or statu-
tory provision. The public purposes expressed in the Enabl-
ing Law are to be achieved by facilitating the completion of
the Project by the Borrower.
(4) The City will acquire no interest in the Project
other than (a) any general interest in the Borrower's prop-
erty shared by all holders of the Borrower's obligations
which rank and are secured equally with the Borrower's ob-
ligations pursuant to the Loan Agreement, (b) any lien and
1490 ORDINANCES Ord. No. 478
security interest created by the Loan Agreement, and (c)
any interest created by any other mortgage or deed of trust
or other security instrument executed and delivered by the
Borrower or any third party as security for the Loan or the
revenue bonds as the Board may provide for and approve in
the Resolution. The security for the revenue bonds shall be
solely and exclusively (a) the absolute, irrevocable and un-
conditional obligations of the Borrower to make the pay-
ments required by the Loan Agreement, (b) moneys realized
from the liquidation of any lien and security interest created
by the Loan Agreement and of any other lien or security
interest created with respect to any property as security for
the Loan or the revenue bonds as the Board may provide for
and approve in the Resolution, and (c) moneys realized
from any guaranty of the revenue bonds or of the Loan as
the Board may provide for and approve in the Resolution.
(5) The best interests of the City will be served by sell-
ing the revenue bonds at private (negotiated) sale, as
authorized by the Enabling Law, upon terms and conditions
approved by the Board in the Resolution.
Sec. 2. And be it further ordained, That the City is hereby
authorized and empowered to issue, sell and deliver, at any
time, or from time to time, and in one or more series, and
as limited obligations of the City and not upon its full faith
and credit, its Baltimore City, Maryland Industrial Develop-
ment Revenue Bonds (Federated Hotel Corporation Pro-
ject), in the aggregate principal amount not to exceed
$10,000,000 (the ^'Bonds''), subject to the provisions of
this Ordinance. The proceeds of the Bonds will be loaned to
the Borrower pursuant to the terms and provisions of the
Loan Agreement, to be used by the Borrower for the sole
and exclusive purpose of financing the costs, charges, fees,
and expenses in connection with the completion of the
Project. The Bonds and the interest thereon shall be limited
obligations of the City, repayable by the City solely from
the revenue derived from Loan repayments (both principal
and interest) made to the City by the Borrower pursuant
to the Loan Agreement and from any other moneys made
available to the City for such purpose. The security for the
Bonds shall be solely and exclusively as provided in Section
1 of this Ordinance.
ORDINANCES 1491
Sec. 3. And be it further ordained, That this Ordinance
constitutes the commitment of the City to issue the Bonds,
and the Mayor of the City is hereby authorized to accept the
Letter of Intent on behalf of the City in order to further
evidence the commitment of the City to issue the Bonds in
accordance with the terms and provisions of this Ordinance.
Sec. 4. And be it further ordained, That each of the Bonds
shall bear the descriptive title "Baltimore City, Maryland
Industrial Development Revenue Bonds (Federated Hotel
Corporation Project)", provided, that the descriptive title
may contain such other descriptive information as the
Board may prescribe in the Resolution (e.g. "1981 Series"
or "1982 Series"). The Bonds shall bear interest at the rate
or rates of interest to be determined by negotiation with
the orginial purchaser or purchasers of the Bonds and to be
approved and prescribed by the Board in the Resolution.
Sec. 5. And be it further ordained, That the definitive
Bonds, which may be engraved, printed or typewritten, in-
cluding any Trustee's Certificate of Authentication to be
endorsed thereon if the Trust Agreement is entered into,
shall be in such form, not inconsistent with the Enabling
Law and the provisions of this Ordinance, as the Board may
approve in the Resolution.
Sec. 6. And be it further ordained, That the Bonds shall
be executed in the name of the City and on its behalf by the
Mayor of the City, by his manual or facsimile signature, and
by the Director of Finance of the City, by his manual or
facsimile signature, and the corporate seal of the City or a
facsimile thereof shall be impressed or otherwise repro-
duced thereon and attested by the Custodian of the City
Seal, by his manual signature. The Loan Agreement, the
Trust Agreement or the Assignment and, where applicable,
all other documents as the Board shall deem necessary to
effectuate the issuance, sale and delivery of the Bonds, shall
be executed in the name of the City and on its behalf by
the Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City or a facsimile thereof
shall be impressed or otherwise reproduced thereon and
attested by the Custodian of the City Seal by his manual
signature. In case any officer whose signature or a facsimile
1492 ORDINANCES Ord. No. 478
of whose signature shall appear on the Bonds or any of the
aforesaid documents shall cease to be such officer before the
delivery of the Bonds or any of the other aforesaid docu-
ments, such signature or such facsimile shall nevertheless
be valid and sufficient for all purposes, the same as if such
officer had remained in office until delivery. The Mayor of
the City, the Director of Finance of the City, the Custodian
of the City Seal and other officials of the City, are hereby
authorized and empowered to do all such acts and things
and execute such documents and certificates as the Board
may determine in the Resolution to be necessary to carry
out and comply with the provisions hereof.
Sec. 7. And be it further ordained, That the Bonds shall
be executed, issued and delivered at any time, or from time
to time and in one or more series and in such amount or
amounts not exceeding, in the aggregate, the principal
amount of $10,000,000, as the Board shall prescribe in the
Resolution.
Sec. 8. And be it further ordained, That the Bonds shall
be dated, shall be in such denominations, shall be of such
form and tenor, and shall be payable in such amounts, at
such times and at such place or places as the Board shall
prescribe in the Resolution.
Sec. 9. And be it further ordained, That the Bonds may
be subject to redemption prior to their stated maturities
upon such terms and conditions as the Board shall prescribe
in the Resolution.
Sec. 10. And be it further ordained, That prior to the
issuance, sale and delivery of the Bonds, the Board shall
adopt the Resolution pursuant to which Board shall :
(a) prescribe the form, tenor, terms and conditions of
and security for the Bonds ;
(b) prescribe the actual amounts, rate or rates of interest
(or the method of determining the same), denominations,
date, actual maturity or maturities, and the place or places
of payment of the Bonds, and the terms and conditions and
details under which the Bonds may be called for redemption
prior to their stated maturities ;
ORDINANCES 1493
(c) if a Trust Agreement is entered into, appoint a bank
having trust powers, or a trust company, as Trustee for the
Bonds and, if necessary, appoint a paying agent or agents
for the Bonds, which may be the Trustee ;
(d) approve the form and contents, and authorize the
execution and delivery (where applicable) of (i) the Loan
Agreement, (ii) the Trust Agreement or the Assignment,
(iii) such other documents, including (without limitation)
mortgages, deeds of trust, guaranties and security instru-
ments as the Board shall deem necessary to approve in order
to effectuate the issuance, sale and delivery of the Bonds;
(e) determine the time of execution, issuance, sale and
delivery of the Bonds and prescribe any and all other details
of the Bonds ;
(f ) provide for the direct payment by the Borrower of all
costs, fees and expenses incurred by or on behalf of the City
in connection with the issuance, sale and delivery of the
Bonds, including (without limitation) costs of printing (if
any) and issuing the Bonds, legal expenses and compensa-
tion to any person (other than full time employees of the
City) performing services by or on behalf of the City in
connection therewith ;
(g) if the Trust Agreement is entered into, provide for
the issuance and sale (subject to the passage of an appro-
priate ordinance authorizing the same as may be required
at the time) of one or more series of additional bonds and
one or more series of refunding bonds ; and
(h) do any and all things, and authorize the officials of
the City to do any and all things, necessary, proper or
expedient in connection with the issuance, sale and delivery
of the Bonds.
Sec. 11. And he it further ordained, That the Lroan Agree-
ment and the Trust Agreement or the Assignment shall
contain such terms, provisions and conditions, not consistent
with the Enabling Law and the provisions of this Ordinance,
as the Board shall approve in the Resolution.
Sec. 12. And be it further ordained, That as authorized
by the Enabling Law, the Bonds shall be sold at private
1494 ORDINANCES Ord. No. 478
(negotiated) sale upon such terms and conditions as shall
be approved by the Board in the Resolution.
Sec. 13. And be it further ordained, That neither the
Bonds nor the interest thereon shall ever constitute a pledge
of or involve the faith and credit or the taxing power of the
City, and neither shall ever constitute a debt of the City
within the meaning of Section 7 of Article XI of the Consti-
tution of Maryland or other constitutional, statutory or
charter provisions limiting or restricting the sale or issuance
of bonds, notes or other obligations of the City, and neither
shall ever constitute or give rise to any pecuniary liability
of the City. The Bonds, and the interest thereon, shall be
limited obligations of the City, the principal of and interest
on which Bonds shall be payable by the City solely from the
revenue derived from Loan repayments (both principal and
interest) made to the City by the Borrower on account of
the Loan and, to the extent provided by the Board in the
Resolution, from the proceeds of the Bonds, and from any
other moneys made available to the City for such purpose.
The proceeds of the Bonds will be paid directly to the
Trustee or the Project Fund Trustee to be held and dis-
bursed by the Trustee as provided in the Trust Agreement
or by the Project Fund Trustee as provided in the Assign-
ment to be approved by the Board in the Resolution, pro-
vided, however, that if the Board finds and determines,
pursuant to the Resolution, that the Project will be com-
pleted on or before the date of delivery of the Bonds, the
Board may provide in the Resolution that the proceeds of
the Bonds will be paid directly to the Borrower, or for the
account of the Borrower, to be used by the Borrower to pay
the costs of, or to reimburse the Borrower for the payment
of the costs of, the completion of the Project, as provided
in the Assignment to be approved by the Board in the
Resolution. No such moneys will be commingled with the
City's funds or will be subject to the absolute control of the
City, but will be subject only to such limited supervision
and checks as are deemed necessary or desirable by the City
to insure that the proceeds of the Bonds are used to accom-
plish the public purposes of the Enabling Law and this
Ordinance.
Sec. 14. And be it further ordained, That in consideration
of the purchase and acceptance of the Bonds by those who
ORDINANCES 1495
shall hold the Bonds from time to time, the City does
hereby, and by the execution and delivery of the Trust
Agreement or the Assignment to be approved by the Board
shall, set aside and pledge the income and revenue under
the Loan Agreement (other than payments to the City for
indemnification or to reimburse the City for expenses in-
curred by the City itself) to the Trustee or, if the Assign-
ment is entered into, the Original Purchaser, its successors
and assigns, to be used and applied for the payment of the
principal of and interest on the Bonds. Pursuant to the
terms of the Loan Agreement to be approved by the Board
in the Resolution, payments sufficient for the prompt pay-
ment when due of the principal of, premium, if any, and
interest on the Bonds are to be paid by the Borrov^er to the
Trustee for the benefit of the holders of the Bonds, or, if
the Assignment is entered into, to the Original Purchaser,
its successors and assigns, for the account of the City.
Sec. 15. And be it further ordained, That the Borrower
shall agree that :
(a) It will submit any plans and specifications for por-
tions of the Project within Baltimore City to the Department
of Housing and Community Development for approval,
which approval shall not be withheld unreasonably ; and
(b) It and its developers will work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality and design.
Sec. 16. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision,
sentence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity, unconstitutionality, or
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
Ordinance, or their application to other persons or circum-
stances. It is hereby declared to be the legislative intent that
this Ordinance would have passed if such illegal, invalid or
unconstitutional provision, sentence, clause, section or part
had not been included herein, and if the person or circum-
stances to which this Ordinance or any part hereof are inap-
plicable had been specifically exempted herefrom.
1496 ORDINANCES Ord. No. 479
Sec. 17. And be it further ordained, That, if the Bonds
are not issued and sold within one year from the date on
which this Ordinance is approved by the Mayor of the City,
the authorization provided in this Ordinance for the City to
issue and sell the Bonds shall expire; provided, however,
that the Board may, after a showing of good cause at a
public hearing held before the Board, extend such authoriza-
tion for one additional term not to exceed six months. The
Board, in its sole discretion, shall determine the sufficiency,
or lack thereof, of the reasons presented for any requested
extension of this Ordinance. If an extension is granted,
notice of such extension and the reasons therefore must be
sent to the City Council.
Sec. 18. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Maijor,
No. 479
(Council No. 856)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
WESTWOOD APARTMENT
COMPANY, INC.
FOR the purpose of authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $500,000,
pursuant to the provisions of Sub-section (50) of Article
II of the Charter of Baltimore City (1964 Revision, as
amended), for the sole and exclusive purpose of financ-
ing the costs, charges, fees and expenses in connection
with the acquisition by AAA of certain real property in
ORDINANCES 1497
Baltimore City together with any improvements lo-
cated thereon, and the construction, reconstruction, reno-
vation, and/or rehabilitation of improvements which
will be owned by AAA and used as rental dwelling units,
and to provide long term financing of the land and im-
provements ; authorizing the Mayor of the City, on behalf
of the City, to accept the letter of intent dated October
12, 1981, from AAA to the City, making certain legisla-
tive findings ; authorizing and empowering the Board of
Finance of the City, by a resolution or resolutions
adopted prior to the issuance, sale and delivery of any
series of such bonds, to (a) prescribe, among other
things but not limited to, the form, terms, provisions,
manner or method of issuing and selling (including ne-
gotiated as well as competitive bid sale), and the time or
times of issuance, and any and all other details of such
bonds, and (b) do any and all things necessary, proper
or expedient in connection with the issuance and sale of
such bonds; providing that AAA shall agree to submit
any plans and specifications to, and to coordinate with,
the Department of Housing and Community Develop-
ment in connection with the completion of such project;
providing that such bonds (or anticipation notes issued
in anticipation of the issuance of such bonds) must be
issued and sold within six months from the date this
Ordinance is approved by the Mayor, unless the Board
of Finance approves one six month extension as pro-
vided in this Ordinance; authorizing the issuance of
notes in anticipation of the issuance of such revenue
bonds; and generally providing for and determining
various matters and details in connection with the issu-
ance and sale of such bonds and bond anticipation notes.
RECITALS
Sub-section (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended) (the ''Enabling
Law"), empowers the Mayor and City Council of Balti-
more (the ''City") to borrow money to finance under-
takings for the accomplishment of any of the purposes,
objects and powers of the City and in connection there-
with to issue bonds, notes, or other obligations (includ-
ing refunding bonds, notes or other obligations), all of
which shall be fully negotiable, payable, as to both prin-
1498 ORDINANCES Ord. No. 479
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the property, facilities, developments and improve-
ments whose financing is undertaken by the issuance of
such bonds, notes or other obligations, (II) the revenues
from or arising in connection with any contracts, mort-
gages or other securities purchased or otherwise ac-
quired with the proceeds of such bonds, notes or other
obligations, (III) the contracts, mortgages or other se-
curities purchased or otherwise acquired with the pro-
ceeds of such bonds, notes or other obligations, or (IV)
any combination of (I), (II) or (III). The purposes,
objects and powers of the City contemplated by the En-
abling Law includes the relief of conditions of unemploy-
ment in Baltimore City, encouraging the increase of in-
dustry and a balanced economy in Baltimore City,
promoting economic development in Baltimore City, and
promoting the health, welfare safety of the residents of
Baltimore City.
The City has received a letter of intent dated October
12, 1981, (the ''Letter of Intent") from AAA (the ''Bor-
rower"), pursuant to which the Borrower has requested
the City to participate in the financing of the costs of
the acquisition and/or development by the Borrower of
a certain project in Baltimore City, Maryland (the
"Project"), by issuing and selling the City's industrial
development revenue bonds in the aggregate principal
amount not to exceed $500,000, (the "Bonds"), and by
making the proceeds of the Bonds available to the Bor-
rower to be used by the Borrower for the sole and exclu-
sive purpose of financing the costs of the acquisition
and/or development of the Project by the Borrower.
The Project, which is an "undertaking" which will
accomplish the purposes, objects and powers of the City
as mentioned in the Enabling Law, will consist generally
of (a) the renovation, rehabilitation, construction, and/
or reconstruction of any existing improvements which
is owned and operated by the Borrower and located at
2126 Maryland Avenue and 103 West 22nd Street, and
(c) the long term financing of the land and improve-
ments. The Borrower anticipates that the units will be
leased to various tenants whose identities are unknown
at this time.
ORDINANCES 1499
The Enabling Law provides that the City may author-
ize and empower the Board of Finance of the City (the
''Board") by resolution to determine and set forth the
form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof, and to do any and all things necessary, proper
or expedient in connection with the issuance and sale of
the Bonds.
NOW THEREFORE, IN ACCORDANCE WITH THE
ENABLING LAW:
Section 1. Be it ordained by the Mayor and City Coun-
cil of Baltimore, That acting pursuant to the Enabling
Law, it is hereby found and determined as follows :
(1) The issuance and sale of the Bonds by the City
pursuant to the Enabling Law in order to make the pro-
ceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the cost of acquisition and/
or development of the Project will facilitate and expedite
the acquisition and/or development of the Project by the
Borrower.
(2) The acquisition and/or development of the Project
by the Borrower and the financing of the costs of such
acquisition and/or development as provided in this ordi-
nance will serve to promote the general purposes contem-
plated by the Enabling Law by (a) sustaining jobs and
employment in Baltimore City; (b) promoting economic
development in Baltimore City; and (c) encouraging the
increase of industry and a balanced economy in Baltimore
City.
(3) Any and all of the Bonds shall not be general obli-
gations of the City and shall not be a pledge of or involve
the faith and credit or the taxing power of the City, and
shall not constitute a debt of the City, all within the mean-
ing of Section 7 of Article XI of the Constitution of Mary-
land or within the meaning of any other constitutional,
statutory or charter provision limiting or restricting the
sale or issuance of bonds, notes or other obligations of the
City. All of the Bonds shall be limited obligations of the
City, and shall be fully negotiable, payable, as to both prin-
1500 ORDINANCES Ord. No. 479
cipal and interest, solely from and secured solely by a
pledge of (I) the revenues from or arising in connection
with the Project, (II) the revenues from or arising in con-
nection with any contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of the
Bonds, (III) the contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of the
Bonds, or (IV) any combination of (I), (II) or (III), all
as the Board may approve by a resolution or resolutions
adopted prior to the issuance, sale and delivery of any of
the Bonds.
Sec. 2. And be it further ordained, That the City is
hereby authorized and empowered to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds, in
the aggregate principal amount not to exceed $500,000,
subject to the provisions of this Ordinance. The proceeds
of the Bonds will be made available to the Borrower under
terms and conditions approved by the Board and set forth
in a Resolution, and used by the Borrov/er for the sole and
exclusive purpose of financing the costs of the acquisition
and/or development of the Project.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the
Bonds, and the Mayor of the City is hereby authorized to
accept the Letter of Intent on behalf of the City in order
to further evidence the present intent of the City to issue
the Bonds in accordance with the terms and provisions of
this Ordinance.
Sec. 4. And be it further ordained, That, as permitted
by the Enabling Law, the Board is hereby authorized and
empowered, by a resolution or resolutions adopted prior
to the issuance, sale and delivery of any of the Bonds, to:
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive
bid sale), and the time or times of issuance, and any and
all other details of the Bonds and the issuance and sale
thereof ;
ORDINANCES 1501
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agree-
ment, (ii) the form of any such trust agreement or similar
agreement, as provided in the Enabling Law, and (iii)
such provisions in any such trust agreement or similar
agreement as the Board may deem reasonable and proper
for the security of the holders of the Bonds ;
(c) approve the terms and conditions, including but
not limited to the terms and conditions of any documents
to be executed and delivered by the City (other than cus-
tomary financing statements and closing certificates),
under which the proceeds of the Bonds will be made avail-
able to the Borrower to finance the costs of the acquisition
and/or development of the Project ; and
(d) do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and delivery of
the Bonds.
Sec. 5. And he it further ordained, That any and all of
the Bonds shall not be general obligations of the City and
shall not be a pledge of or involve the faith and credit or
the taxing power of the City, and shall not constitute a
debt of the City, all within the meaning of Section 7 of
Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of bonds, notes or other ob-
ligations of the City, and shall be fully negotiable, payable,
as to both principal and interest, solely from and secured
solely by a pledge of (I) the revenues from or arising in
connection with the Project, (II) the revenues from or
arising in connection with any contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, (III) the contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, or (IV) any combination of (I),
(II) or (III), all as the Board may approve by a resolu-
tion or resolutions adopted prior to the issuance, sale and
delivery of any of the Bonds.
Sec. 6. And he it further ordained, That the Borrower
shall agree that :
1502 ORDINANCES Ord. No. 479
(a) it will submit any plans and specifications for the
Project to the Department of Housing and Community De-
velopment for approval, and that the Department of Hous-
ing and Community Development may refuse approval of
any plans and specifications for aesthetic or functional
reasons ; and
(b) it and its developers v^ill work with the design
advisory group appointed by the Department of Housing
and Community Development in order to achieve high
quality site, building, and landscape design.
Sec. 7. And be it further ordained, That any and all of
the Bonds shall be executed in the name of the City and on
its behalf by the Mayor of the City, by his manual or fac-
simile signature, and by the Director of Finance of the
City, by his manual or facsimile signature, and the cor-
porate seal of the City or a facsimile thereof shall be im-
pressed or otherwise reproduced thereon and attested by
the Custodian or Alternate Custodian of the City Seal, by
his/her manual signature. Any trust agreement or other
documents as the Board shall deem necessary to effectuate
the issuance, sale and delivery of the Bonds shall be ex-
ecuted in the name of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the City and on its behalf by the
Mayor of the City by his manual or facsimile signature,
and the corporate seal of the Seal or a facsimile there shall
be impressed or otherwise reproduced thereon and attested
by the Custodian or Alternate Custodian of the City Seal
by his/her manual signature. In case any officer whose sig-
nature or a facsimile of whose signature shall appear on
the Bonds or any of the aforesaid documents shall cease
to be such officer before the delivery of the Bonds or any of
the other aforesaid documents, such signatures or such fac-
simile shall nevertheless be valid and sufficient for all pur-
poses, the same as if such officer had remained in office
until delivery. The Mayor of the City, the Director of Fi-
nance of the city, the Custodian and the Alternate Cus-
todian of the City Seal and other officials of the City are
hereby authorized and empowered to do all such acts and
things and execute such documents and certificates as the
Board may determine by resolution to be necessary to
carry out and comply with the provisions hereof.
ORDINANCES 1503
Sec. 8. And he it further ordained, That any and all
necessary financing statements required for the consum-
mation of the transactions authorized by this Ordinance
may be executed on behalf of the City by the Mayor of the
City or by such other appropriate official of the City as
may be designated by the Mayor of the City to execute
such financing statements.
Sec. 9. And be it further ordained, That the authority
to issue the Bonds is intended and shall be deemed to in-
clude the authority to issue bond anticipation notes pur-
suant to Section 12 of Article 31 of the Annotated Code of
Maryland (1976 Replacement Volume and 1980 Cumula-
tive Supplement), as amended (the ''Bond Anticipation
Note Enabling Legislation"). Reference in this Ordinance
to the ''Bonds" shall include such bond anticipation notes
where appropriate. Prior to the issuance, sale and delivery
of any series of bond anticipation notes, the Board shall
adopt a resolution or resolutions, to :
(a) prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling (including negotiated as well as competitive bid
sale), and the time or times of issuance, and any and all
other details of such bond anticipation notes and the issu-
uance and sale thereof ;
(b) approve (i) the pledge or assignment by the City
of any of the security described in Section 5 of this Ordi-
nance, pursuant to a trust agreement or similar agree-
ment, as provided in the Enabling Law, and (iii) such pro-
visions in any such trust agreement or similar agreement
as the Board may deem reasonable and proper for the se-
curity of the holders of such bond anticipation notes ;
(c) approve the terms and conditions, including that
not limited to the terms and conditions of any document to
be executed and delivered by the City (other than custom-
ary financing statements and closing certificates), under
which the proceeds of such bond anticipation notes will be
made available to the Borrower to finance the costs of the
acquisition and/or development of the Project; and
(d) do any and all things necessary, proper or expedi-
ent in connection with the issuance, sale and delivery of
such bond anticipation notes. In accordance with the Bond
1504 ORDINANCES Ord. No. 479
Anticipation Note Enabling Legislation, the City hereby
covenants to pay any bond anticipation notes issued pur-
suant to this Section of this Ordinance and the interest
thereon from the proceeds of the Bonds in anticipation of
the sale of which such notes are issued, and the City here-
by further covenants to issue such Bonds, as the case may
be, when, as soon as, the reason for deferring the issuance
of the Bonds no longer exists. The timely issuance of such
Bonds, however, is dependent upon matters not within the
control of the City, including (without limitation) the ex-
istence of a purchaser or purchasers for such Bonds at the
time the reason for deferring the issuance of the Bonds no
longer exists and the effectiveness of various actions taken
by the Borrower, its officers, agents and employees.
Sec. 10. And be it further ordained, That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of the
remaining provisions, sentences, clauses, sections, or parts
of this Ordinance or their application to other persons or
circumstances. It is hereby declared to be the legislative
intent that this Ordinance would have been passed if such
illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included herein, as if
the person or circumstances to which this Ordinance or
any part hereof are inapplicable had been specifically ex-
empted herefrom.
Sec. 11. And be it further ordained, That either the
bonds or bond anticipation notes issued pursuant to Sec-
tion 9 of this Ordinance in anticipation of the issuance of
the Bonds must be issued and sold within six months from
the date on which this Ordinance is approved by the Mayor
of the City; provided, however, that the Board, after a
showing of good cause at a public hearing held before the
Board prior to or after the expiration of such six month
period, may extend the period during which either the
Bonds or such bond anticipation notes may be issued and
sold for one additional term not to exceed six months from
the date on which the first six month period expired. The
ORDINANCES 1505
Board, in its sole discretion, and without action by the City
Council, shall determine the sufficiency, or lack thereof, of
the reasons presented for any requested extension of the
six month period. To the extent that neither the Bonds or
such bond anticipation notes are issued and sold within
twelve months from the date on which this Ordinance is
approved by the Mayor of the City, the authority provided
in this Ordinance for the City to issue and sell the Bonds
and such bond anticipation notes shall expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 480
(Council No. 857)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
(100 ST. PAUL STREET PARTNERSHIP PROJECT)
FOR the purpose of (a) authorizing and empowering Mayor
and City Council of Baltimore to issue and sell, at any
time or from time to time and in one or more series, as
limited obligations of the City and not upon its full faith
and credit, its industrial development revenue bonds in an
aggregate principal amount not exceeding $1,400,000.00
pursuant to the provisions of Article II, subsection (50)
of the Charter of Baltimore City (1964 Revision), as
amended, for the sole and exclusive purpose of financing
the costs of the completion by 100 St. Paul Street Part-
nership of a certain project consisting of the acquisition
of the real property located at 100 St. Paul Street in the
City of Baltimore, Maryland (including the existing
improvement thereon) , the renovation of certain improve-
ments thereon, and the purchase and installation of cer-
tain machinery and equipment therein, to be owned by
1506 ORDINANCES Ord. No. 480
the Borrower and leased to one or more tenants for use
as office and commercial facilities; (b) authorizing the
Mayor of the City, on the City's behalf, to accept the
letter of intent dated October 12, 1981, from the Borrower
to the City; (c) making certain legislative findings; (d)
authorizing and empowering the City's Board of Finance
by one or more resolution adopted before the issuance,
sale and delivery of any series of such bonds, to (i)
prescribe, among other things but not limited to, the form,
terms, provisions, manner or method of issuing and sell-
ing such bonds (including one or more negotiated or
competitive bid sales) , the time or times of their issuance,
and any and all other details of such bonds, and (ii) do
any and all things necessary, proper or expedient in con-
nection with the issuance and sale of such bonds; (e)
authorizing the Board to adopt one or more supplemental
resolutions for certain purposes; (f) authorizing the
issuance of notes in anticipation of the issuance of such
bonds; (g) providing that the Borrower shall agree to
submit any plans and specifications to, and to cooperate
with, the City's Department of Housing and Community
Development in connection with the completion of such
project; (h) providing that such bonds or bond anticipa-
tion notes must be issued and sold within six (6) months
from the date on which this Ordinance is approved by the
Mayor, unless the Board approves one six-month exten-
sion as provided in this Ordinance; and (i) generally
providing for and determining various matters and details
in connection with the issuance and sale of such bonds
and bond anticipation notes.
RECITALS
Article II, subsection (50) of the Charter of Baltimore
City (1964 Revision), as amended (hereinafter referred
to as "the Enabling Law"), empowers Mayor and City
Council of Baltimore (herein referred to as **the City")
to borrow money to finance undertakings for the accom-
plishment of any of the City's purposes, objects and
powers and in connection therewith to issue bonds, notes
or other obligations (including refunding bonds, notes or
other obligation), all of which shall be fully negotiable
and payable, as to both principal and interest, solely from
ORDINANCES 1507
and secured solely by a pledge of any one or more of (a)
the revenues from or arising in connection with the
property, facilities, developments and improvements
whose financing is undertaken by the issuance of such
bonds, notes or other obligations, (b) the revenues from
or arising in connection with any contracts, mortgages
or other securities, purchased or otherwise acquired with
the proceeds of such bonds, notes or other obliga-
tions, or (c) the contracts, mortgages or other securities
purchased or otherwise acquired with the proceeds of
such bonds, notes or other obligations. The purposes,
objects and powers of the City contemplated by the
Enabling Law include the relief of conditions of unem-
ployment in the City of Baltimore, Maryland, encouraging
the increase of industry and a balanced economy therein,
promoting economic development therein, and promoting
the health, welfare and safety of the residents thereof.
The City has received a letter of intent dated October
12, 1981 (hereinafter referred to as "the Letter of
Intent") from 100 St. Paul Street Partnership, a general
partnership organized and existing under the law of
Maryland (herein referred to as "the Borrower"), pur-
suant to which the Borrower has requested the City to
participate in financing the costs of the Borrower's com-
pletion of a certain project in the City of Baltimore,
Maryland (herein referred to as "the Project"), by issu-
ing and selling the City's industrial development revenue
bonds in an aggregate principal sum not exceeding
$1,400,000.00 (hereinafter referred to as "the Bonds"),
and by making the proceeds of the Bonds available to the
Borrower to be used by it for the sole and exclusive
purpose of financing the costs of its completion of the
Project.
The Project will consist generally of (a) the acquisition
of a parcel of land located at 100 St. Paul Street, Balti-
more, Maryland, and the existing improvements thereon
(consisting of, among other things, an eight-story build-
ing and a three-story building containing in the aggregate
aprtroximately 22.000 square feet of floor area), (b) the
renovation of such existing improvements for oflices and
commercial space, (c) the acquisition, construction and
installation in such improvements of such machinery and
1508 ORDINANCES Ord. No. 480
equipment, and such other improvements, as may be
necessary or useful in connection with the operation
thereof, and (d) the acquisition of such other interests
in land (including, by way of example rather than of
limitation, roads, rights of access, utilities and other
necessary site preparation facilities) as may be neces-
sary or suitable for the foregoing purposes. Upon its
completion, the Project will be owned by the Borrower
and leased to one or more tenants for use as offices and
commercial facilities. The identities of such tenants have
not yet been determined.
The Enabling Law provides that the City may authorize
and empower the City's Board of Finance (herein re-
ferred to as ''the Board") by resolution to determine
and set forth the form, terms, provisions, manner or
method of issuing and selling the Bonds (including one
or more negotiated or competitive bid sales), the time
or times of their issuance, and any and all other details of
the Bonds and the issuance and sale thereof, and to do
any and all things necessary, proper or expedient in
connection with the issuance and sale of the Bonds.
NOW, THEREFORE, IN ACCORDANCE WITH THE
PROVISIONS OF THE ENABLING LAW,
Section 1. Be it ordained by Mayor and City Council of
Baltimore, That, acting pursuant to the provisions of the
Enabling Law, it is hereby found and determined that:
1.1. The City's issuance and sale of the Bonds pursuant
to the provisions of the Enabling Law in order to make the
proceeds thereof available to the Borrower for the sole and
exclusive purpose of financing the costs of completion of the
Project will facilitate and expedite such completion.
1.2. The Borrower's completion of the Project and the
financing of the costs thereof as provided in this Ordinance
will serve to promote the general purposes contemplated by
the Enabling Law by (a) sustaining and increasing jobs
and employment in the City of Baltimore, (b) promoting
economic development therein, and (c) encouraging the
increase of industry and a balanced economy therein.
1.3. The Bonds shall not be general obligations of the
City, shall not be a pledge of or involve the City's faith and
ORDINANCES 1509
credit or taxing power, and shall not constitute a debt of
the City, all within the meaning of the provisions of Article
XI, section 7 of the Constitution of Maryland or any other
constitutional, statutory or charter provision limiting or
restricting the sale or issuance of the City's bonds, notes or
other obligations. The Bonds shall be limited obligations of
the City, shall be fully negotiable, and shall be payable, as to
both principal and interest, solely from and secured solely
by a pledge of any one or more of (a) the revenues from or
arising in connection with the Project, (b) the revenues
from or arising in connection with any contracts, mortgages
or other securities purchased or otherwise acquired with
the proceeds of the Bonds, and (c) the contracts, mortgages
or other securities purchased or otherwise acquired with the
proceeds of the Bonds, all as the Board may approve by
one or more resolutions adopted before the issuance, sale
and delivery of any of the Bonds.
Sec. 2. And he it further ordained, That the City is hereby
authorized and empowered to issue and sell, at any time or
from time to time and in one or more series, as limited
obligations of the City and not upon its full faith and credit,
its industrial development revenue bonds in a aggregate
principal sum not exceeding $1,400,000.00, subject to the
provisions of this Ordinance. The proceeds of the Bonds
shall be made available to the Borrower under terms and
conditions approved by the Board and set forth in a resolu-
tion, and shall be used by the Borrower for the sole purpose
of financing the costs of the completion of the Project. ANY
PROCEEDS OF THE BONDS, AND ANY SUMS EARNED
BY INVESTMENT OF SUCH PROCEEDS BEFORE DIS-
BURSEMENT, WHICH PROCEEDS AND OTHER SUMS
REMAIN UNDISBURSED AFTER MAKING FULL PAY-
MENT (OR PROVISION THEREFOR) OF THE COSTS
OF THE COMPLETION OF THE PROJECT, SHALL BE
APPLIED TO THE REDEMPTION OF THE BONDS AT
THE EARLIEST PRACTICABLE REDEMPTION DATE.
Sec. 3. And be it further ordained, That this Ordinance
constitutes the present intent of the City to issue the Bonds,
and the Mayor of the City (herein referred to as "the
Mayor'') is hereby authorized to accept the Letter of Intent
on the City's behalf to further evidence the City's present
1510 ORDINANCES Ord. No. 480
intent to issue the Bonds in accordance with the provisions
of this Ordinance.
Sec. 4. And be it further ordained, That, as permitted by
the Enabling Law, the Board is hereby authorized and em-
powered, by one or more resolutions adopted before the
issuance, sale and delivery of any of the Bonds, to
4.1 prescribe, among other things but not limited to, the
form, terms, provisions, manner or method of issuing and
selling the Bonds (including one or more negotiated or
competitive bid sales), the time or times of their issuance,
and any and all other details of the Bonds and their issuance
and sale ;
4.2. approve (a) the City's pledge or assignment of any
of the security described in by the provisions of Section 6
hereof, pursuant to a trust agreement or similar agreement,
(b) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law, and (c) such pro-
visions in any such trust agreement or similar agreement
as the Board may deem reasonable and proper for the
security of the holders of the Bonds ;
4.3 approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of the Bonds will be made available to the
Borrower to finance the costs of the completion of the
Project; and
4.4. do any and all things necessary, proper or expedient
in connection with the issuance, sale and delivery of the
Bonds.
Sec. 5. And be it further ordained that the Board is
hereby authorized and empowered to adopt one or more
resolutions from time to time, either before or after the
issuance, sale and delivery of the Bonds, to supplement the
resolution or resolutions referred to in the provisions of
Sections 4 and 8 hereof, and thereby to approve amendments
or supplements to or substitutes for the forms and pro-
visions of the Bonds, such trust agreement or similar agree-
ment and all other documents approved by such resolution
ORDINANCES 1511
or resolutions, provided that each such supplemental reso-
lution and each such amendment, supplement or substitute
shall be in accordance with the provisions of the Enabling
Law and this Ordinance.
Sec. 5. And be it further ordained, That the Board is
not be general obligations of the City, shall not be a pledge
of or involve the City's faith and credit or taxing power,
and shall not constitute a debt of the City, all within the
meaning of the provisions of Article XI, section 7 of the
Constitution of Maryland or any other constitutional, sta-
tutory or charter provision limiting or restricting the sale
or issuance of the City's bonds, notes or other obligations.
The Bonds shall be limited obligations of the City, shall be
fully negotiable, and shall be payable, as to both principal
and interest, solely from and secured solely by a pledge of
any one or more of (a) the revenues from or arising in
connection with the Project, (b) the revenues from or aris-
ing in connection with any contracts, mortgages or other
securities purchased or otherwise acquired with the pro-
ceeds of the Bonds, or (c) the contracts, mortgages or
other securities purchased or otherwise acquired with the
proceeds of the Bonds, all as the Board may approve by one
or more resolutions adopted before the issuance, sale and
delivery of any of the Bonds.
Sec. 7. And be it further ordained, That the Bonds shall
be executed in the City's name and on its behalf by the
Mayor, by his manual or facsimile signature, and by the
City's Director of Finance, by his manual or facsimile
signature, and the City's corporate seal or a facsimile
thereof shall be impressed or otherwise reproduced thereon
and attested by the Custodian of the City Seal, by his manual
signature. The trust agreement or similar agreement and all
other documents approved by the resolution or resolutions
referred to in the provisions of Sections 4 and 8 hereof, and
any and all amendments thereto approved by a resolution
referred to in the provisions of Section 5 hereof, shall be
executed in the City's name and on its behalf by the Mayor
by his manual signature, and the City's corporate seal or a
facsimile thereof shall be impressed or otherwise reproduced
thereon and attested by the Custodian of the City Seal, by
his manual signature. In case any officer whose signature
1512 ORDINANCES Ord. No. 480
or a facsimile thereof shall appear on the Bonds or any of
the said documents shall cease to be such officer before
the delivery of the Bonds or any other such document, such
signature or such facsimile shall nevertheless be valid and
sufficient for all purposes, as if such officer had remained
in office until delivery. The Mayor, the City's Director of
Finance, the Custodian of the City Seal and other officials
of the City are hereby authorized and empowered to do all
such acts and things and execute such documents and certi-
ficates as the Board may determine in the resolutions re-
ferred to in the provisions of Sections 4, 5 and 8 hereof to
be necessary to carry out and comply with the provisions
hereof.
Sec. 8. And be it further ordained, That the authority to
issue the Bonds is intended and shall be deemed to include
the authority to issue bond anticipation notes pursuant to
the provisions of article 31, section 12 of the Annotated
Code of Maryland (1976 Replacement Volume and 198 [0]
Cumulative Supplement), as amended (hereinafter referred
to as ''the Note Enabling Law"). Reference in this Ordi-
nance to the Bonds shall include such bond anticipation
notes where appropriate. As permitted by the provisions of
the Enabling Law and the Note Enabling Law, the Board
is hereby authorized and empowered, by one or more resolu-
tions adopted before the issuance, sale and delivery of any
such bond anticipation notes, to
8.1. prescribe, among other things but not limited to,
the form, terms, provisions, manner or method of issuing
and selling any such bond anticipation notes (including one
or more negotiated or competitive bid sales), the time or
times of their issuance, and any and all other details of such
bond anticipation notes and their issuance and sale;
8.2 approve (a) the City's pledge or assignment of any
of the security described in the provisions of Section 6
hereof, pursuant to a trust agreement or similar agreement,
(b) the form of any such trust agreement or similar agree-
ment, as provided in the Enabling Law or the Note Enabling
Law. and (c) such provisions in any such trust agreement
or similar agreement as the Board may deem reasonable
and proper for the security of the holders of such bond
anticipation notes ;
ORDINANCES 1513
8.3. approve the terms and conditions, including but not
limited to the terms and conditions of any documents to be
executed and delivered by the City (other than customary
financing statements and closing certificates), under which
the proceeds of such bond anticipation notes will be made
available to the Borrower to finance the costs of the comple-
tion of the Project ; and
8.4. do any and all things necessary, proper or expedient
in connection with the issuance, sale and delivery of such
bond anticipation notes.
In accordance with the Note Enabling Law, the City
hereby covenants (a) to pay any bond anticipation notes
issued pursuant to the provisions of this Section, and the
interest thereon, from the proceeds of the Bonds in antici-
pation of the sale of which such notes are issued, and (b)
to issue such Bonds when, and as soon as, the reason for
deferring the issuance of the Bonds no longer exists. The
timely issuance of such Bonds, however, is dependent upon
matters not within the City^s control, including (without
limitation) the existence of a purchaser or purchasers of
such Bonds when the reason for deferring the issuance of
the Bonds no longer exists, and the effectiveness of various
actions taken by the Borrower, its officers, agents and
employees.
Sec. 9. And he it further ordained, That the Borrower
shall agree that
9.1. it will submit any plans and specifications for the
Project to the City's Department of Housing and Commu-
nity Development for approval, and that such Department
may refuse approval of any such plans and specifications
for aesthetic or functional reasons ; and
9.2. it and its developers will work with the design
advisory group appointed by such Department to achieve
high quality site, building and landscape design.
Sec. 10. And be it further ordained. That the provisions
of this Ordinance are severable, and if any provision, sen-
tence, clause, section or part hereof is held illegal, invalid
or unconstitutional or inapplicable to any person or circum-
stance, such illegality, invalidity, unconstitutionality or
1514 ORDINANCES Ord. No. 480
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections or parts of this
Ordinance or their application to other persons or circum-
stances. It is hereby declared to be the legislative intent
that this Ordinance would have been passed if such illegal,
invalid or unconstitutional provision, sentence, clause, sec-
tion or part has not been included herein, and if the person
or circumstances to which this Ordinance or any part hereof
is inapplicable had been specifically exempted herefrom.
Sec. 11. And be it further ordained, That either the Bonds
or any bond anticipation notes issued pursuant to the pro-
visions of Section 8 hereof must be issued and sold within
six (6) months from the date on which this Ordinance is
approved by the Mayor; provided, that the Board, after a
showing of good cause at a public hearing held before the
Board before or after the expiration of such six-month
period, may extend the period during which either the Bonds
or such bond anticipation notes may be issued and sold for
one additional term not exceeding six (6) months from the
date on which the first six-month period expires. The Board,
in its sole discretion and without action by the City
Council of the City, shall determine the sufficiency, or lack
thereof, of the reasons presented for any requested extension
of such six-month period. If an extension is granted, notice
of such extension and the reasons therefor must be sent to
the City Council of the City. To the extent that neither the
Bonds nor such bond anticipation notes are issued and sold
within twelve (12) months from the date on which this
Ordinance is approved by the Mayor, the authority pro-
vided in this Ordinance for the City to issue and sell the
Bonds and such bond anticipation notes shall expire.
Sec. 12. And be it further ordained, That this Ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Maijor.
ORDINANCES 1515
No. 481
(Council No. 859)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
ROUNDHOUSE SQUARE
RESIDENTIAL DEVELOPMENT PROGRAM
FOR the purpose of authorizing and providing for the
issuance, sale and delivery, by the Mayor and City Coun-
cil of Baltimore (the ''City") of its revenue obligations
for the Roundhouse Square Residential Development
Program (as defined in this ordinance) consisting of its
revenue notes, to be used in part to pay the costs of con-
struction of residential units as described in this ordi-
nance, designated ''Single-Family Construction Mortgage
Revenue Notes (Roundhouse Square Loan Program)" in
the aggregate principal amount not exceeding $3,800,000,
and of its revenue bonds, to be used in part to provide
mortgage financing for the purchasers of owner-occupied
residential units described in this ordinance, designated
"Single-Family Mortgage Revenue Bonds (Roundhouse
Square Loan Program)" in the aggregate principal
amount not exceeding $4,000,000, each pursuant to the
provisions of Subsection (51) and (50) of Article II of
the Charter of Baltimore City (1964 Revision, as
amended), in order to use the proceeds for the sole and
exclusive purpose of financing the Roundhouse Square
Residential Construction Loan Program (as defined in
this ordinance) each as part of the Roundhouse Square
Residential Development Program (as defined in this
ordinance) for the Project Areas within the Roundhouse
Square Area (each as defined in this ordinance) in the
City of Baltimore, including (without limitation) the
purchase, the contracting to purchase or the acquisition
of mortgage loans bearing interest rates below those
generally prevailing (at the time of purchase or contract
to purchase) in the private mortgage market (to the
extent such a market exists at that time) for loans of
comparable quality and term in the City of Baltimore,
as provided in this ordinance, for the public purpose of
developing readily available sources of money at low
151G ORDINANCES Ord. No. 481
and moderate cost for the Roundhouse Square Residen-
tial Development Program (as defined in this ordi-
nance) for the Project Areas within the Roundhouse
Square Area (each as defined in this ordinance) within
the City of Baltimore; making certain legislative find-
ings, among others, concerning the public benefit and
purpose of such revenue notes and revenue bonds ; pro-
viding that (a) such revenue notes and revenue bonds
shall be payable solely and only from Revenue Note and
Bond Loan Program Revenues (as defined in this ordi-
nance) and (to the extent provided by resolution of the
Board of Finance of the City adopted pursuant to this
ordinance) certain proceeds or such revenue notes and
revenue bonds and (b) such revenue notes and revenue
bonds shall not ever constitute, within the meaning of
Section 7 of Article XI of the Constitution of Maryland
or any other constitutional, statutory or charter pro-
vision or otherwise (i) a debt or general obligation of
the City or any other political subdivision or (ii) a
pledge of or an involvement of the faith and credit or
the taxing powers of the City or any other political sub-
division; authorizing and empow^ering the Board of
Finance of the City by resolution (i) to determine and
set forth certain matters pertaining to the revenue notes
and the revenue bonds including (without limitation)
the form, terms, provisions (including redemption pro-
visions and sinking fund requirements, if any), manner
or method of issuing and selling (including negotiated
as well as competitive bid sale) and the time or times of
issuance and any and all other details of such revenue
notes and revenue bonds, (ii) to do any and all things
necessary, proper or expedient in connection with the
issuance and sale of such revenue notes and revenue
bonds, including (without limitation) to approve the
form of construction loan agreements in connection with
such revenue notes, to approve the form of servicing
agreements in connection with such revenue notes and
bonds, to prepare and distribute preliminary and final
ofl[icial statements or preliminary and final placement
memoranda or circulars in connection with the sale of
such revenue notes and revenue bonds, to determine the
dates, times and places when underwriting or placement
agreements or purchase agreements shall be submitted
ORDINANCES 1517
by the underwriters or placement agents for such reve-
nue notes and revenue bonds or the purchasers of such
revenue notes or revenue bonds and to determine certain
of the terms of such agreements, to determine the inter-
est rate or rates to be paid by the City on such revenue
notes and revenue bonds and to appoint a trustee for
such revenue notes and revenue bonds, and (iii) to ap-
prove the form of trust agreements between the City
and the trustee, which trust agreements may (a) pledge
or assign all or any part of the security for such revenue
notes and revenue bonds, (b) contain reasonable and
proper provisions for the protection and enforcement of
the rights and remedies of the holders of such revenue
notes and revenue bonds, (c) set forth the rights and
remedies of the holders of such revenue notes and reve-
nue bonds and of the trustee and restrict the individual
right of action by the holders of such revenue notes and
revenue bonds, and (d) contain whatever other pro-
visions are deemed reasonable and proper for the secur-
ity of the holders of such revenue notes and revenue
bonds; providing that all or a portion of such revenue
notes and revenue bonds may be refunded pursuant to a
subsequent ordinance of the City; and generally provid-
ing for and determining various matters in connection
with the authorization, issuance, security, sale and pay-
ment of such revenue obligations for the Roundhouse
Square Residential Development Program (as defined in
this ordinance).
RECITALS
A. Subsection (51) — Loans to Facilitate Low and
Moderate Cost Residential Mortgage Financing Within
the City, of Article II of the Charter of Baltimore City
(1964 Revision, as amended) (''Subsection 51") author-
izes Mayor and City Council of Baltimore (the **City")
to borrow money by the issuance and sale of its revenue
notes and revenue bonds and to utilize the proceeds of
the notes and bonds to develop an owner-occupancy resi-
dential mortgage loan program in the City of Baltimore,
Maryland ("Baltimore") to provide readily available
sources of money at low^ and moderate cost for such resi-
dential mortgage loans within Baltimore through the
purchase, contracting to purchase or other acquisition of
1518 ORDINANCES Ord. No. 481
mortgage loans (i) bearing interest rates below those
generally prevailing (at the time of purchase or contract
to purchase) in the private mortgage market (to the
extent such a market exists at that time) for loans of
comparable quality and terms in Baltimore and (ii) hav-
ing whatever other terms and characteristics as may be
determined by the City. Subsection (51) requires that
revenue notes and revenue bonds authorized thereunder
shall be issued pursuant to Subsection (50) — Revenue
Bonds and Obligations, of the Charter of Baltimore City
(1964 Revision, as amended) .
B. Subsection (50) — Revenue Bonds and Obligations,
of Article II of the Charter of Baltimore City (1964
Revision, as amended) (''Subsection (50)") authorizes
the City to borrow money through the issuance and sale
of its revenue notes and revenue bonds for the accom-
plishment of any of the purposes, objects and powers of
the City. Revenue notes and revenue bonds issued pursu-
ant to Subsection (50) shall be payable, as to both prin-
cipal and interest, solely from and secured solely by (i)
the revenues from or arising in connection with the
property, facilities, developments and improvements
whose financing is undertaken by issuance of the notes
or bonds, (ii) the revenues from or arising in connection
with any contracts, mortgages or other securities pur-
chased or otherwise acquired with the proceeds of the
notes or bonds, (iii) the contracts, mortgages or other
securities purchased or otherwise acquired with the pro-
ceeds of the notes or bonds, or (iv) any combination of
(i), (ii) or (iii).
C. Subsection (50) further authorizes the City to
authorize and empower the Board of Finance of the City
by resolution (i) to determine and set forth certain
matters pertaining to the revenue notes and revenue
bonds, including (without limitation) the forms, terms,
provisions, manner or method of issuing and selling (in-
cluding negotiated as well as competitive bid sale), and
the time or times of issuance and any and all other
details of such revenue notes or revenue bonds, (ii) to
do any and all things necessary, proper or expedient in
connection with the issuance and sale of such revenue
notes or revenue bonds, and (iii) to approve the form of
a trust agreement between the City and the trustee.
ORDINANCES 1519
which trust agreement may (a) pledge or assign all or
any part of the security for such notes or bonds, (b)
contain reasonable and proper provisions for the pro-
tection and enforcement of the rights and remedies of
the holders of such notes or bonds, (c) set forth the
rights and remedies of the holders of such notes or
bonds, and of the trustee and restrict the individual
rights of action by the holders of the notes or bonds, and
(d) contain whatever other provisions are deemed rea-
sonable and proper for the security of the holders of such
notes or bonds.
D. Subsection (51) and Subsection (50) are referred
to herein collectively as the "Enabling Laws".
E. Subsection (51) declares, among other things,
that borrowing money thereunder by the issuance of
revenue notes or revenue bonds shall be for the essential
public purpose of (i) preserving a healthy and viable
economy within Baltimore, (ii) encouraging and facili-
tating the creation or maintenance of a healthy and
ready market for residential real estate in Baltimore,
including (without limitation) the ready sale and pur-
chase of existing residential real estate and the purchase,
acquisition, construction, erection or development of
buildings or structures for owner-occupied residential
purposes, including any land necessary therefor, within
the boundaries of Baltimore, (iii) encouraging and facil-
itating the purchase of residential real property in Bal-
timore in order to maintain and encourage growth in
real property assessments in Baltimore, and (iv) pre-
serving the public health, safety and welfare of the resi-
dents of Baltimore by enabling residents of Baltimore of
all income levels to finance readily their housing needs
in Baltimore, thus discouraging the proliferation of
vacant and substandard housing in Baltimore and re-
tarding or reversing the movement of financially self
sufficient taxpayers to surrounding subdivisions.
F. The Project Area of the Roundhouse Square Resi-
dential Development Program shall be located in the
City of Baltimore in the 800 block of West Pratt Street.
Consisting of single family residential dwelling units
including but not limited to townhouse, condominiums,,
cooperatives, or other residential structures.
1520 ORDINANCES Ord. No. 481
G. As part of the development of the Roundhouse
Square Area, the City seeks to promote owner-occupied
residential units within Baltimore and the Roundhouse
Square Area offering a variety of good housing accom-
modations in an attractive environmental (such program
as it may have heretofore or may hereafter be amended,
or supplemented or extended to other areas from time to
time called the "Roundhouse Square Residential Devel-
opment Program") .
H. Pursuant to the Roundhouse Square Residential
Development Program, the City proposes to provide nec-
essary construction financing as determ^ined from time
to time (such program as it may have heretofore or may
hereafter be amended, (supplemented or extended to
other areas from time to time called the "Roundhouse
Square Residential Construction Loan Program" for
developers and builders (herein "developers"), and nec-
essary long-term mortgage financing (such program as
it may have heretofore or may hereafter be amended,
supplemented or extended to other areas from time to
time called "Roundhouse Square Residential Mortgage
Loan Program") for purchasers (herein "mortgagors")
of residential units in the Project Area through several
issues of the City's revenue notes and revenue bonds.
L Pursuant to the Enabling Laws, the City has de-
termined to issue and sell in an amount not to exceed
$3,800,000, aggregate principal amount of its "Single-
Family Construction Mortgage Revenue Notes (Round-
house Square Loan Program)", (the "Notes") and to
use the proceeds of the Notes to provide construction
financing for development of an owner-occupancy resi-
dential loan program for the Roundhouse Square Resi-
dential Development Program which loan program will
include (without limitation) the financing of construc-
tion loans for the developer.
J. Pursuant to the Enabling Laws, the City has de-
termined to issue and sell in an amount not to exceed
$4,000,000, aggregate principal amount of its "Single-
Family Mortgage Revenue Bonds (Roundhouse Square
Loan Program)", (the "Bonds") and to use the proceeds
of the Bonds, to develop an owner-occupancy residential
loan program for the Roundhouse Square Residential
ORDINANCES 1521
Development Program, which loan program will include
(without limitation) the financing of mortgage loans for
the Mortgagors.
K. The City has determined to issue and sell the
Notes and the Bonds to effectuate the public purpose of
(i) preserving a healthy and viable economy within Bal-
timore, (ii) encouraging and facilitating the creation or
maintenance of a healthy and ready market for resi-
dential real estate in Baltimore, including (without
limitation) the ready sale and purchase of existing resi-
dential real estate and the purchase, acquisition, con-
struction, erection or development of buildings or struc-
tures for ow^ner-occupied residential purposes, including
any land necessary therefor, within the boundaries of
Baltimore, (iii) encouraging and facilitating the pur-
chase of residential real property in Baltimore in order
to maintain and encourage growth in real property
assessments in Baltimore, and (iv) preserving the public
health, safety and welfare of the residents of Baltimore
by enabling residents of Baltimore of all income levels
to finance readily their housing needs in Baltimore, thus
discouraging the proliferation of vacant and substan-
dard housing in Baltimore and retarding or reversing
the movement of financially self sufficient taxpayers to
surrounding subdivisions.
L. Pursuant to authority provided in Article XI-H of
the Constitution of Maryland and laws enacted pursuant
thereto, the City from time to time has general funds
available for use to make or contract to make or to guar-
antee or insure financial loans to any person or other
legal entity to be used for or in connection with the pur-
chase, acquisition, construction, erection or development
of buildings or structures, including any land necessary
therefor, within the boundaries of Baltimore, which
buildings or structures are to be used or occupied for
residential purposes. Pursuant to such authority, or as
otherwise may be permitted by applicable law, the City,
acting through the Department of Housing and Com-
munity Development of the City and the Board of Esti-
mates of the City, may determine from time to time to
make, guarantee or insure financial loans in connection
with the owner-occupied residential units for the Project
Areas to supplement the proceeds of the Notes and
1522 ORDINANCES Ord. No. 481
Bonds to develop the Roundhouse Square Residential
Construction Loan Program and the Roundhouse Square
Residential Mortgage Loan Program as an integral part
of the Roundhouse Square Residential Development
Program.
M. The City has determined to use, in part, the pro-
ceeds of the Bonds to provide mortgage financing to the
purchasers of the owner-occupied residential units in the
Project Areas pursuant to the Inner Harbor Residential
Development Program by making loans to finance such
purchases.
Section 1. Be it ordained by Mayor and City Council of
Baltimore, That, acting pursuant to the Enabling Laws, it
is hereby found and determined, as follows:
(1) The issuance of revenue notes and revenue bonds
by the City pursuant to the Enabling Laws to develop the
Roundhouse Square Residential Construction Loan Pro-
gram and the Roundhouse Square Residential Mortgage
Loan Program each as a part of the Roundhouse Square
Residential Development Program in Baltimore through
the purchase, contracting to purchase or other acquisition
of mortgage loans (i) bearing interest rates below those
generally prevailing (at the time of purchase or contract
to purchase) in the private mortgage market (to the ex-
tent such a market exists at that time) for loans of com-
parable quality and term in Baltimore and (ii) having the
terms and characteristics as determined by this ordinance
and the Board of Finance acting pursuant to this ordi-
nance, will encourage and facilitate the purchase of resi-
dential property in the Project Area by residents of
Baltimore of all income levels.
(2) The accomplishment of the transactions contem-
plated and authorized by this ordinance, including (without
limitation) the development of the Roundhouse Square
Residential Construction Loan Program and the Round-
house Square Residential Mortgage Loan Program, will
accomplish a public purpose and meet existing public needs
by (i) preserving a healthy and viable economy within
Baltimore, (ii) encouraging and facilitating the creation
or maintenance of a healthy and ready market for residen-
tial real estate in Baltimore, including (without limitation)
ORDINANCES 1523
the ready sale and purchase of existing residential real
estate and the purchase, acquisition, construction, erection
or development of buildings or structures for owner-occu-
pied residential purposes, including any land necessary
therefor, within the boundaries of Baltimore City, (iii)
encouraging and facilitating the purchase of residential
real property in Baltimore in order to maintain and en-
courage growth in real property assessments in Baltimore,
and (iv) preserving the public health, safety and welfare
of the residents of Baltimore by enabling residents of Bal-
timore of all income levels to finance readily their housing
needs in Baltimore, thus discouraging the proliferation of
vacant and substandard housing in Baltimore and retard-
ing or reversing the movement of financially self sufficient
taxpayers to surrounding subdivisions.
(3) Neither notes or bonds nor interest coupons issued
under the authority of the Enabling Laws constitute (i) a
debt or general obligation of the City or any other political
subdivisions, or (ii) a pledge of or an involvement of the
faith and credit or the taxing powers of the City or any
other political subdivision, all within the meaning of Sec-
tion 7 of Article XI of the Constitution of Maryland or
any other constitutional, statutory or charter provision.
The principal of and interest on the Notes and Bonds shall
be payable from, and secured by, (i) an assignment of
payments, proceeds, charges, rents and any other income
or pajonent (except certain escrow payments) to be de-
rived in cash by or for the account of the City from or
related to the Roundhouse Square Residential Construction
Loan Program and the Roundhouse Square Residential
Mortgage Loan Program, including (without limitation)
payment (as determined by resolution of the Board of
Finance adopted pursuant to this ordinance) of principal
and interest on construction mortgage loans made by the
City to the developer of owner-occupied residential units
in the Roundhouse Square Residential Development Pro-
gram and on mortgage loans made by the City to Mort-
gagors (all such income or payments called the "Revenue
Note and Bond Loan Program Revenues") and (ii) (to the
extent provided by resolution of the Board of Finance
adopted pursuant to this ordinance) proceeds of the Notes
and Bonds. The principal of and interest on the Notes shall
be secured by (without limitation) construction mortgages
1524 ORDINANCES Ord. No. 481
from the developer in connection with the Roundhouse
Square Residential Construction Loan Program (the "Con-
struction Mortgages"). The principal of and interest on
the Bonds shall be secured by (without limitation) mort-
gages from Mortgagors in connection with the Roundhouse
Square Residential Mortgage Loan Program (the "Unit
Mortgages"). The Notes and Bonds may be additionally
secured (without in any way specifying or limiting the
terms of such additional security) by (i) insuring all or a
part of the Unit Mortgages by private mortgage insurance
provided by one or more private mortgage insurers selected
by the Board of Finance; or (ii) insuring all or a part
of the Unit Mortgages through the Maryland Housing
Fund or such other Federal, State or municipal fund or
other agency permitted by applicable law to perform such
insuring functions; or (iii) assigning the proceeds of the
mortgage insurance to the trustee for the holders of the
Notes and Bonds (the "Bondholders") ; or (iv) such other
security as the Board of Finance may by resolution ap-
prove; or (v) any combination of (i), (ii), (iii) and (iv).
The principal amount of the Notes and Bonds will be
paid directly to, and will be disbursed by, the independent
trustee or trusteees appointed by the Board of Finance
pursuant to this ordinance (the "Trustee"). No such
moneys will be either commingled with the City's general
funds or made subject to the absolute control of the City,
except for such limited supervision and checks as are
deemed necessary or desirable by the City to insure that
the proceeds of the Notes and Bonds are used to accom-
plish the public purposes of the Enabling Laws and this
ordinance. The Revenue Note and Bond Loan Revenues, in
the case of construction financing for the developer, will be
paid by the developer to the Trustee as servicer for the
Construction Mortgages or as Trustee for the Roundhouse
Square Residential Construction Loan Program, as stipu-
lated in the construction loan agreement or agreements to
be entered into by the City with an agent, or agents, for
construction loan servicing of the Construction Mortgages.
The Revenue Note and Bond Loan Program Revenues, in
the case of financing for Mortgagors, will be paid by the
Mortgagors to the mortgage servicer or servicers for the
Roundhouse Square Residential Mortgage Loan Program,
as stipulated in the servicing agreement or agreements to
ORDINANCES 1525
be entered into by the City with a servicing agent or agents
for the Unit Mortgages, and the Revenue Note and Bond
Loan Program Revenues, less the servicing fee to be ap-
proved by the Board of Finance, shall be paid by such
servicer to the Trustee. The transactions authorized hereby
do not constitute a public improvement of a capital project
within the meaning of any charter or statutory provision.
The public purposes expressed in this ordinance are in-
tended to be achieved by providing residential low and
moderate cost mortgage construction loans to the developer
of the Roundhouse Square Residential Development Pro-
gram and residential low and moderate cost mortgage loans
to the Mortgagors, each within Baltimore; preserving a
healthy economy within Baltimore; fostering a healthy
market for residential real estate in Baltimore; fostering
the purchase of residential real property in Baltimore and
providing affordable housing within Baltimore, thus dis-
couraging the movement of taxpayers to surrounding
subdivisions.
Sec. 2. And be it further ordained, That, the issuance,
sale and delivery of not exceeding $3,800,000, aggregate
principal amount of revenue notes, hereby designated
"Single-Family Construction Mortgage Revenue Notes
(Roundhouse Square Loan Program)", and the issuance,
sale and delivery of not exceeding $4,000,000, aggregate
principal amount of revenue bonds, hereby designated
"Single-Family Mortgage Revenue Bonds (Roundhouse
Square Loan Program)'* are hereby authorized, subject to
the provisions of this ordiance, the proceeds to be used to
develop the Roundhouse Square Residential Construction
Loan Program and the Roundhouse Square Residential
Mortgage Loan Program as a part of the Roundhouse
Square Residential Development Program, all as set forth
in this ordinance. In addition to the disbursement of Note
and Bond proceeds for construction loans and mortgage
loans under the Roundhouse Square Residential Construc-
tion Loan Program and the Roundhouse Square Residential
Mortgage Loan Program, Note and Bond proceeds may be
disbursed (without limitation) (i) with respect to con-
struction loans, to pay all costs of planning, development
and construction of the owner-occupied residential units
for the Roundhouse Square Residential Development Pro-
gram including (without limitation) architect's and engi-
1526 ORDINANCES Ord. No. 481
neers' fees and expenses, commitment fees, title insurance
and recordation fees and taxes, land costs, land develop-
ment costs, interest during the construction period, con-
structon materials and equipment, construction contracting
services and payment and performance bonds, (ii) to pay
the cost of issuance and sale of the Notes and Bonds, in-
cluding (without limitation) costs of printing Notes and
Bonds, the official statement and other legal documents,
costs of delivery of the Notes and Bonds, commitment fees,
legal fees, accounting fees, underwriting costs, advertising
costs, cost of rating agency reviews and all other incidental
related expenses and (iii) (to the extent provided by
resolution of the Board of Finance adopted pursuant to
this ordinance) to fund a debt service reserve or other
reserve funds for the Notes and Bonds. The Notes and
Bonds shall be solely and exclusively payable from the
Revenue Note and Bond Loan Program Revenues and (to
the extent provided by resolution of the Board of Finance
adopted pursuant to this ordinance) certain Note and Bond
proceeds. The Notes and Bonds shall be secured (to the
extent provided by resolution of the Board of Finance
adopted pursuant to this ordinance) by (without limita-
tion) the Construction Mortgages and the Unit Mortgages.
The Board of Finance may require, however, that the
Notes and Bonds be additionally secured by (i) insuring
the Construction Mortgages and Unit Mortgages through
private mortgage insurance provided by one or more pri-
vate mortgage insurers selected by the Board of Finance;
or (11) insuring the Construction Mortgages and Unit
Mortgages through the Maryland Housing Fund or such
Federal, State, or municipal fund or other agency per-
mitted by applicable law to perform such insuring func-
tions; or (iii) assigning the proceeds of the mortgage
insurance to the Trustee for the Bondholders; or (iv) such
other security as the Board of Finance may approve; or
(v) any combination of (i), (ii), (iii) and (iv). The
aggregate principal amount of Notes issued, sold and deliv-
ered pursuant to this ordinance shall not exceed $3,800,000,
and the aggregate principal amount of the Bonds issued,
sold and delivered pursuant to this ordinance shall not
exceed §4,000,000, unless such amount or amounts, in each
case, shall be increased by an ordinance of the City supple-
mental hereto. The City contemplates that, because of
ORDINANCES 1527
inflation and other factors which may occur during the
development and construction periods of the Project Area,
the City will amend or supplement this ordinance from
time to time to increase such amounts or otherwise to pro-
vide for matters affecting the Roundhouse Square Residen-
tial Development Program. Nothing in this ordinance is
intended or shall be deemed to exclude the issuance of
refunding bonds to refund all or a portion of the Notes or
Bonds, and the adoption of a subsequent ordinance or ordi-
nances for such purpose is expressly contemplated by this
ordinance.
In accordance with the Enabling Laws, the City hereby
authorizes the Board of Finance, unless the City shall
otherwise prescribe prior to the issuance and delivery of
the Notes or Bonds, by resolution to take the following
actions and to make the following commitment on behalf
of the City :
(a) to determine and set forth the form, terms, pro-
visions (including redemption provisions and sinking fund
requirements, if any), manner or method of issuing and
selling (including negotiated or competitive bid sale) and
the time or times of issuance and any and all other details
of the Notes and Bonds ;
(b) to determine and set forth the form, terms and
provisions of construction loan agreements, servicing
agreements and all other construction and mortgage loan
and other documents in connection with the Notes and
Bonds ;
(c) to prepare and distribute, in conjunction with the
prospective underwriters or placement agents, if any, for
the Notes and Bonds, preliminary and final official state-
ments or placement memoranda or circulars as the Board
of Finance deems necessary and appropriate in connection
with the sale of the Notes and Bonds ; provided, however,
that any such preliminary official statements or placement
memoranda or circulars shall be clearly marked to indicate
that they are subject to completion and amendment;
(d) to deteiTnine the dates, times and places when an
underwriting or placement agreement or purchase contract
shall be submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
1528 ORDINANCES Ord. No. 481
Bonds, such underwriting or placement agreement or pur-
chase contract to specify the interest rate or rates proposed
to be paid on the Notes and Bonds, the price at which such
Notes and Bonds are to be sold to such underwriters,
placement agents or purchasers, and such other matters as
the underwriters, placement agents or purchasers and the
Board of Finance may deem necessary or desirable in order
to effect the sale and delivery of the Notes and Bonds ;
(e) to determine the interest rate or rates to be paid
by the City on the Notes and Bonds in accordance with the
proposed underwriting or placement agreement or pur-
chase contract submitted by the underwriters or placement
agents for the Notes and Bonds or purchasers of the Notes
and Bonds ;
(f) to appoint, as the Board of Finance deems neces-
sary and appropriate, a bank having trust powers, or a
trust company, as trustee for the Notes and Bonds to be
issued pursuant to this ordinance; and
(g) to approve the form of trust agreements between
the City and the Trustee, which trust agreements may
(i) pledge or assign all or any part of the security of the
Notes and Bonds, (ii) contain reasonable and proper pro-
visions for the protection and enforcement of the rights
and remedies of the Bondholders, (iii) set forth the rights
and remedies of the Bondholders and the Trustee and may
restrict the individual right of action by the Bondholders,
and (iv) contain whatever other provisions are deemed
reasonable and proper for the securtiy of the Bondholders.
The Board of Finance shall perform any and all actions
necessary or deemed appropriate by such Board in order
to effect the issuance and sale of the Notes and Bonds in
accordance with and pursuant to this ordinance for the
Notes and Bonds.
The Notes and Bonds shall be dated as of the first day of
the month next following the date on which the Notes and
Bonds are sold unless the Board of Finance shall specify a
different date by a resolution adopted pursuant to this
ordinance, and the Notes and Bonds shall bear interest at
an annual rate or rates payable semi-annually following
the date of the Notes and Bonds so that, if the Notes and
Bonds are dated October 1, 1981, interest on the Notes and
ORDINANCES 1529
Bonds will be payable on March 1, 1982 and semi-annually
thereafter each October 1 and March 1 unless the Board of
Finance shall specify more frequent or different dates by
a resolution adopted pursuant to this ordinance.
The Notes and Bonds issued hereunder shall mature on
the date or dates provided in a resolution of the Board of
Finance adopted pursuant to this ordinance, but the last
maturity of each series of Notes shall in no event exceed a
period of five (5) years from the date of such series of
Notes and the last maturity of each series of the Bonds
shall in no event exceed a period of forty (40) years from
the date of such series of Bonds. If the resolution of the
Board of Finance does not provide any maturity or matu-
rities for the Notes, all of the Notes of a series shall
mature on the date five (5) years from the date of such
series of Notes. For example, if the Note is dated Septem-
ber 30, 1981, all of the Notes of such series will mature
(in the absence of a resolution of the Board of Finance
determining otherwise) on September 30, 1986. If the
resolution of the Board of Finance does not provide any
maturity or maturities for the Bonds, all of the Bonds of a
series shall mature on the date thirty-two (32) years from
the date of such series of the Bonds. For example, if the
Bond is dated September 30, 1981, all the Bonds of such
series will mature (in the absence of a resolution of the
Board of Finance determining otherwise) on September
30, 2013.
Sec. 3. And be it further ordained, That, prior to the
sale of the Notes and Bonds, the Board of Finance, unless
the City shall otherwise prescribe, m.ay determine by
resolution ;
(1) the provisions of trust between the City and the
Trustee ;
(2) the manner of execution, authentication, registra-
tion and transfer of the Notes and Bonds;
(3) provisions for authentication and delivery of the
Notes and Bonds ;
(4) the provisions of the Roundhouse Square Residen-
tial Construction Loan Program and of the Roundhouse
Square Residential Mortgage Loan Program, including
1530 ORDINANCES Ord. No. 481
(i) the terms of the construction loans and of the Con-
struction Mortgages acquired under the Roundhouse
Square Residential Construction Loan Program, (ii) the
terms of the mortgage loans and of the Unit Mortgages
acquired under the Roundhouse Square Residential Mort-
gage Loan Program, and (iii) the terms of any servicing
agreement between the City and a mortgage servicer for
the Construction Mortgages and the Unit Mortgages;
(5) the terms of the private insurance, public insur-
ance or other security for the Notes and Bonds;
(6) provisions for creation, holding and disbursement
of a construction loan and a program fund to be held by
the Trustee ;
(7) provisions for creation, holding and disbursement
of any other funds and accounts to be held by the Trustee ;
(8) provisions for the application of the Revenue Note
and Bond Loan Program Revenues;
(9) provisions for the security for and investment of
moneys held by the Trustee;
(10) the details of the procedure for the redemption
of the Notes and Bonds;
(11) remedies for Bondholders in the event of default;
(12) the duties, rights and immunities of the Trustee;
(13) the manner of execution of instruments by Bond-
holders and the method of proof of ownership of the Notes
and Bonds ;
(14) provisions for modification of this ordinance;
(15) provisions for defeasance of the Notes and Bonds ;
(16) the forms of the Notes and Bonds, coupons and
the Trustee's authentication certificathe, and
(17) such other matters in connection with the autho-
rization, issuance, security, sale and payment of the Notes
and Bonds as may be deemed appropriate by the Board of
Finance.
Any resolution of resolutions adopted pursuant to this
ordinance shall be deemed to be of an administrative
nature.
ORDINANCES 1531
Sec. 4. And be it further ordained, That, the Board of
Finance may approve the issuance of the Notes and Bonds
in one or more series from time to time as the Board of
Finance by resolution adopted pursuant to this ordinance
deems necessary or appropriate in connection with the
schedule, as amended from time to time, of the Roundhouse
Square Residential Development Program. It is hereby
declared that singular terms shall include the plural and
plural the singular so that each provision of this ordinance
shall apply to each series of Notes and Bonds.
Sec. 5. And be it further ordained, That Mayor and City
Council may attend this ordinance from time to time as
necessary and appropriate to increase the authorization
for revenue notes and revenue bonds for the Roundhouse
Square Residential Development Program for increased
costs or other changes in the Roundhouse Square Resi-
dential Development Program for the Project areas, or
otherwise.
Sec. 6. And be it further ordained, That, if any action
or any matter delegated to the Board of Finance, or autho-
rized for implementation by the Board of Finance, shall
not be acted upon by the Board of Finance, such actions
and matters may be acted upon or implemented by a reso-
lution approved by the City Council of the City, which is
subsequently approved by the Mayor or acting Mayor of
the City.
Sec. 7. And be it further ordained. That, the provisions
of this ordinance are severable, and if any provision, sen-
tence, clause, section or part thereof is held illegal, invalid
or unconstitutional or inapplicable to any person or cir-
cumstances, such illegality, invalidity or unconstitutional-
ity, or inapplicability shall not affect or impair any of the
remaining provisions, sentences, clauses, sections, or parts
of this ordinance or its applications to other persons or
circumstances. It is hereby declared to be the legislative
intent that this ordinance would have been adopted if such
illegal, invalid or unconstitutional provisions, sentence,
clause, section or part had not been included therein, and
if the person or circumstances to which this ordinance or
any part thereof is inapplicable had been specifically ex-
empted therefrom.
1532 ORDINANCES Ord. No. 482
Sec. 8. And be it further ordained, That, this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 482
(Council No. 860)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
YORK— WOODBOURNE
Residential Development Program
FOR the purpose of authorizing and providing for the issu-
ance, sale and delivery, by the Maj^or and City Council of
Baltimore (the ''City") of its revenue obligations for the
York — Woodbourne Residential Development Program (as
defined in this ordinance) consisting of its revenue notes,
to be used in part to pay the costs of construction of resi-
dential units as described in this ordinance, designated
"Single-Family Construction Mortgage Revenue Notes
(York — Woodbourne Loan Program)" in the aggregate
principal amount not exceeding $2,500,000, and of its
revenue bonds, to be used in part to provide mortgage
financing for the purchasers of owner-occupied residential
units described in this ordinance, designated ''Single-
Family Mortgage Revenue Bonds (York — Woodbourne
Loan Program)" in the aggregate principal amount not
exceeding $3,000,000, each pursuant to the provisions of
Subsections (51) and (50) of Article II of the Charter of
Baltimore City (1964 Revision, as amended), in order to
use the proceeds for the sole and exclusive purpose of
financing the York — Woodbourne Residential Construc-
tion Loan Program (as defined in this ordinance) each as
part of the York — Woodbourne Residential Development
Program (as defined in this ordinance) for the Project
Areas within the York — Woodbourne Area (each as de-
fined in this ordinance) in the City of Baltimore, includ-
ORDINANCES 1533
ing (without limitation) the purchase, the contracting to
purchase or the acquisition of mortgage loans bearing
interest rates below those generally prevailing (at the
time of purchase or contract to purchase) in the private
mortgage market (to the extent such a market exists at
that time) for loans of comparable quality and term in
the City of Baltimore, as provided in this ordinance, for
the public purpose of developing readily available sources
of money at low and moderate cost for the York — Wood-
bourne Residential Development Program (as defined in
this ordinance) for the Project Areas within the York —
Woodbourne Area (each as defined in this ordinance)
within the City of Baltimore; making certain legislative
findings, among others, concerning the public benefit and
purpose of such revenue notes and revenue bonds; pro-
viding that (a) such revenue notes and revenue bonds
shall be payable solely and only from Revenue Note and
Bond Loan Program Revenues (as defined in this ordi-
nance) and (to the extent provided by resolution of the
Board of Finance of the City adopted pursuant to this
ordinance) certain proceeds or such revenue notes and
revenue bonds and (b) such revenue notes and revenue
bonds shall not ever constitute, within the meaning of
Section 7 of Article XI of the Constitution of Maryland
or any other constitutional, statutory or charter provision
or otherwise (i) a debt or general obligation of the City
or any other political subdivision or (ii) a pledge of or an
involvement of the faith and credit or the taxing powers
of the City or any other political subdivision ; authorizing
and empowering the Board of Finance of the City by reso-
lution (i) to determine and set forth certain matters per-
taining to the revenue notes and the revenue bonds in-
cluding (without limitation) the form, terms, provisions
(including redemption provisions and sinking fund re-
quirements, if any), manner or method of issuing and
selling (including negotiated as well as competitive bid
sale), and the time or times of issuance and any and all
other details of such revenue notes and revenue bonds,
(ii) to do any and all things necessary, proper or ex-
pedient in connection with the issuance and sale of such
revenue notes and revenue bonds, including (without
limitation) to approve the form of construction loan
agreements in connection with such revenue notes, to
1534 ORDINANCES Ord. No. 482
aprove the form of servicing agreements in connection
with such revenue notes and bonds, to prepare and dis-
tribute preliminary and final official statements or pre-
liminary and final placement memoranda or circulars in
connection with the sale of such revenue notes and reve-
nue bonds, to determine the dates, times and places when
underwriting or placement agreements or purchase agree-
ments shall be submitted by the underwriters or place-
ment agents for such revenue notes and revenue bonds or
the purchasers of such revenue notes or revenue bonds
and to determine certain of the terms of such agreements,
to determine the interest rate or rates to be paid by the
City on such revenue notes and revenue bonds and to
appoint a trustee for such revenue notes and revenue
notes and revenue bonds, and (iii) to approve the form of
trust agreements between the City and the trustee, which
trust agreements may (a) pledge or assign all or any part
of the security for such revenue notes and revenue bonds,
(b) contain reasonable and proper provisions for the pro-
tection and enforcement of the rights and remedies of
the holders of such revenue notes and revenue bonds, (c)
set forth the rights and remedies of the holders of such
revenue notes and revenue bonds and of the trustee and
restrict the individual right of action by the holders of
such revenue notes and revenue bonds, and (d) contain
whatever other provisions are deemed reasonable and
proper for the security of the holders of such revenue
notes and revenue bonds; providing that all or a portion
of such revenue notes and revenue bonds may be refunded
pursuant to a subsequent ordinance of the City; and
generally providing for and determining various matters
in connection with the authorization, issuance, security,
sale and payment of such revenue obligations for the
York — Woodbourne Residential Development Program
(as defined in this ordinance).
RECITALS
A. Subsection (51) — Loans to Facilitate Low and
Moderate Cost Residential Mortgage Financing Within
the City, of Article II of the Charter of Baltimore City
(1964 Revision, as amended) (''Subsection 51") author-
izes Mayor and City Council of Baltimore (the "City") to
borrow money by the issuance and sale of its revenue
ORDINANCES 1535
notes and revenue bonds and to utilize the proceeds of the
notes and bonds to develop an owner-occupancy residen-
tial mortgage loan program in the City of Baltimore,
Maryland (''Baltimore") to provide readily available
sources of money at low and moderate cost for such resi-
dential mortgage loans within Baltimore through the
purchase, contracting to purchase or other acquisition of
mortgage loans (i) bearing interest rates below those
generally prevailing (at the time of purchase or contract
to purchase) in the private mortgage market (to the
extent such a market exists at that time) for loans of
comparable quahty and term in Baltimore and (ii) hav-
ing whatever other terms and characteristics as may be
determined by the City. Subsection (51) requires that
revenue notes and revenue bonds authorized thereunder
shall be issued pursuant to Subsection (50) — Revenue
Bonds and Obligations, of the Charter of Baltimore City
(1964 Revision, as amended).
B. Subsection (50) — Revenue Bonds and Obligations,
of Article II of the Charter of Baltimore City (1964 Re-
vision, as amended) ("Subsection (50)") authorizes the
City to borrow money through the issuance and sale of
its revenue notes and revenue bonds for the accomplish-
ment of any of the purposes, objects and powers of the
City. Revenue notes and revenue bonds issued pursuant
to Subsection (50) shall be payable, as to both principal
and interest, solely from and secured solely by (i) the
revenues from or arising in connection with the property,
facilities, developments and improvements whose financ-
ing is undertaken by issuance of the notes or bonds, (ii)
the revenues from or arising in connection with any con-
tracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of the notes or bonds,
(iii) the contracts, mortgages or other securities pur-
chased or otherwise acquired with the proceeds of the
notes or bonds, or (iv) anv combination of (i), (ii) or
(iii).
C. Subsection (50) further authorizes the City to
authorize and empower the Board of Finance of the City
by resolution (i) to determine and set forth certain mat-
ters pertaining to the revenue notes and revenue bonds,
including (without limitation) the forms, terms, provi-
1536 ORDINANCES Ord. No. 482
sions, manner or method of issuing and selling (including
negotiated as well as competitive bid sale), and the time
or times of issuance and any and all other details of such
revenue notes or revenue bonds, (ii) to do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such revenue notes or revenue
bonds, and (iii) to approve the form of a trust agreement
between the City and the trustee, which trust agreement
may (a) pledge or assign all or any part of the security
for such notes or bonds, (b) contain reasonable and
proper provisions for the protection and enforcement of
the rights and remedies of the holders and such notes or
bonds, (c) set forth the rights and remedies of the hold-
ers of such notes or bonds and of the trustee and restrict
the individual rights of action by the holders of the notes
or bonds, and (d) contain whatever other provisions are
deemed reasonable and proper for the security of the
holders of such notes or bonds.
D. Subsection (51) and Subsection (50) are referred
to herein collectively as the ''Enabling Laws".
E. Subsection (51) declares, among other things, that
borrowing money thereunder by the issuance of revenue
notes or revenue bonds shall be for the essential public
purpose of (i) preserving a healthy and viable economy
within Baltimore, (ii) encouraging and facilitating the
creation or maintenance of a healthy and ready market
for residential real estate in Baltimore, including (with-
out limitation) the ready sale and purchase of existing
residential real estate and the purchase, acquisition, con-
struction, erection or development of buildings or struc-
tures for owner-occupied residential purposes, including
any land necessary therefor, within the boundaries of
Baltimore, (iii) encouraging and facilitating the purchase
of residential real property in Baltimore in order to main-
tain and encourage growth in real property assessments
in Baltimore, and (iv) preserving the public health,
safety and welfare of the residents of Baltimore by en-
abling residents of Baltimore of all income levels to
finance readily their housing needs in Baltimore, thus
discouraging the proliferation of vacant and substandard
housing in Baltimore and retarding or reversing the
movement of financially self sufficient taxpayers to sur-
rounding subdivisions.
ORDINANCES 1537
F. The Project Area of the York — Woodbourne Resi-
dential Development Program shall be located in the City
of Baltimore in the 5100 block of York Road. Consisting
of single family residential dwelHng units including but
not limited to townhouse, condominiums, cooperatives, or
other residential structures.
G. As part of the development of the York — Wood-
bourne Area, the City seeks to promote owner-occupied
residential units within Baltimore and the York — Wood-
bourne Area offering a variety of good housing accomo-
dations in an attractive environment (such programs as
it may have heretofore or may hereafter be amended, or
supplemented or extended to other areas from time to
time called the "York — Woodbourne Residential Develop-
ment Program").
H. Pursuant to the York — Woodbourne Residential
Development Program, the City proposes to provide nec-
essary construction financing as determined from time to
time (such program as it may have heretofore or may
hereafter be amended, supplemented or extended to other
areas from time to time called the ''York — Woodbourne
Residential Construction Loan Program" for developers
and builders (herein "developers"), and necessary long-
term mortgage financing (such program as it may have
heretofore or may hereafter be amended, supplemented
or extended to other areas from time to time called
"York — Woodbourne Residential Mortgage Loan Pro-
gram") for purchasers (herein "mortgagors") of residen-
tial units in the Project Area through several issues of
the City's revenue notes and revenue bonds.
L Pursuant to the Enabling Laws, the City has deter-
mined to issue and sell in an amount not to exceed
$2,500,000, aggregate principal amount of its "Single-
Family Construction Mortgage Revenue Notes (York —
Woodbourne Loan Program)", (the "Notes") and to use
the proceeds of the Notes to provide construction financ-
ing for development of an owner-occupancy residential
loan program for the York — W'oodbourne Residential De-
velopment Program which loan program will include
(without limitation) the financing of construction loans
for the developer.
1538 ORDINANCES Ord. No. 482
J. Pursuant to the Enabling Laws, the City has de-
teiTnined to issue and sell in an amount not to exceed
$3,900,000, aggregate principal amount of its ''Single-
Family iMortgage Revenue Bonds (York — Woodbourne
Loan Program)", (the "Bonds") and to use the proceeds
of the Bonds, to develop an owner-occupancy residential
loan program for the York — Woodbourne Residential
Development Program, which loan program will include
(without limitation) the financing of mortgage loans for
the Mortgagors.
K. The City has determined to issue and sell the Notes
and the Bonds to effectuate the public purpose of (i) pre-
serving a healthy and viable economy within Baltimore,
(ii) encouraging and facilitating the creation or mainte-
nance of a healthy and ready market for residential real-
estate in Baltimore, including (without limitation) the
ready sale and purchase of existing residential real estate
and the purchase, acquisition, construction, erection or
development of buildings or structures for owner-occupied
residential purposes, including any land necessary there-
for, within the boundaries of Baltimore, (iii) encouraging
and facilitating the purchase of residential real property
in Baltimore in order to maintain and encourage growth
in real property assessments in Baltimore, and (iv) pre-
serving the public health, safety and welfare of the
residents of Baltimore by enabling residents of Baltimore
of all income levels to finance readily their housing needs
in Baltimore, thus discouraging the proliferation of va-
cant and substandard housing in Baltimore and retarding
or reversing the movement of financially self sufficient
taxpayers to surrounding subdivisions.
L. Pursuant to authority provided in Article XI-H of
the Constitution of Maryland and laws enacted pursuant
thereto, the City from time to time has general funds
available for use to make or contract to make or to guar-
antee or insure financial loans to any person or other legal
entity to be used for or in connection wath the purchase,
acquisition, construction, erection or development of
buildings or structures, including any land necessary
therefor, within the boundaries of Baltimore, which build-
ing or structures are to be used or occupied for residential
purposes. Pursuant to such authoritj^ or as otherwise
ORDINANCES 1539
may be permitted by applicable law, the City, acting
through the Department of Housing and Community De-
velopment of the City and the Board of Estimates of the
City, may deteiTnine from time to time to make, guaran-
tee or insure financial loans in connection with the owner-
occupied residential units for the Project Areas to sup-
plement the proceeds of the Notes and Bonds to develop
the York — Woodbourne Residential Construction Loan
Program and the York — Woodbourne Residential Mort-
gage Loan Program as an integral part of the York —
Woodbourne Residential Development Program.
M. The City has determined to use, in part, the pro-
ceeds of the Bonds to provide mortgage financing to the
purchasers of the owner-occupied residential units in the
Project Areas pursuant to the Inner Harbor Residential
Development Program by making loans to finance such
purchases.
Section 1. Be it ordained by Mayor and City Council of
Baltimore, That, acting pursuant to the Enabling Laws, it
is hereby found and determined, as follows :
(1) The issuance of revenue notes and revenue bonds by
the City pursuant to the Enabling Laws to develop the
York — Woodbourne Residential Construction Loan Pro-
gram and the York — W^oodbourne Residential Mortgage
Loan Program each as a part of the York — Woodbourne
Residential Development Program in Baltimore through the
purchase, contracting to purchase or other acquisition of
mortgage loans (i) bearing interest rates below those gen-
erally prevailing (at the time of purchase or contract to
purchase) in the private mortgage market (to the extent
such a market exists at that time) for loans of comparable
quality and term in Baltimore and (ii) having the terms and
characteristics as determined by this ordinance and the
Board of Finance acting pursuant to this ordinance, will
encourage and facilitate the purchase of residential prop-
erty in the Project Area by residents of Baltimore of all
income levels.
(2) The accomplishment of the transactions contem-
plated and authorized by this ordinance, including (without
limitation) the development of the York — Woodbourne
Residential Construction Loan Program and the York —
1540 ORDINANCES Ord. No. 482
Woodbourne Residential Mortgage Loan Program, will ac-
complish a public purpose and meet existing public needs
by (i) preserving a healthy and viable economy within
Baltimore, (ii) encouraging and facihtating the creation or
maintenance of a healthy and ready market for residential
real estate in Baltimore, including (without limitation) the
ready sale and purchase of existing residential real estate
and the purchase, acquisition, construction, erection or de-
velopment of buildings or structures for owner-occupied
residential purposes, including any land necessary therefor,
within the boundaries of Baltimore City, (iii) encouraging
and facilitating the purchase of residential real property in
Baltimore in order to maintain and encourage growth in
real property assessments in Baltimore, and (iv) preserving
the public health, safety and welfare of the residents of
Baltimore by enabling residents of Baltimore of all income
levels to finance readily their housing needs in Baltimore,
thus discouraging the proliferation of vacant and sub-
standard housing in Baltimore and retarding or reversing
the movement of financially self sufficient taxpayers to sur-
rounding subdivisions.
(3) Neither notes or bonds nor interest coupons issued
under the authority of the Enabling Laws constitute (i) a
debt or general obligation of the City or any other political
subdivisions, or (ii) a pledge of or an involvement of the
faith and credit or the taxing pow^ers of the City or any
other political subdivision, all within the meaning of Sec-
tion 7 of Article XI of the Constitution of Maryland or any
other constitutional, statutory or charter provision. The
principal of and interest on the Notes and Bonds shall be
payable from, and secured by, (i) an assignment of pay-
ments, proceeds, charges, rents and any other income or
pa\TQents (except certain escrow payments) to be derived
in cash by or for the account of the City from or related to
the York — Woodbourne Residential Construction Loan Pro-
gram and the York — Woodbourne Residential ^Mortgage
Loan Program, including (without limitation) payments (as
determined by resolution of the Board of Finance adopted
pursuant to this ordinance) of principal and interest on
construction mortgage loans made by the City to the devel-
oper of owner-occupied residential units in the York —
Woodbourne Residential Development Program and on
mortgage loans made by the City to ^Mortgagors (all such
ORDINANCES 1541
income or payments called the ''Revenue Note and Bond
Loan Program Revenues") and (ii) (to the extent provided
by resolution of the Board of Finance adopted pursuant to
this ordinance) proceeds of the Notes and Bonds. The
principal of and interest on the Notes shall be secured by
without limitation) construction mortgages from the de-
veloper in connection with the York — Woodbourne Residen-
tial Construction Loan Program (the ''Construction Mort-
gages"). The principal of and interest on the Bonds shall be
secured by (without limitation) mortgages from Mortgagors
in connection with the York — Woodbourne Residential
Mortgage Loan Program (the "Unit Mortgages"). The
Notes and Bonds may be additionally secured (without in
any way specifying or limiting the terms of such additional
security) by (i) insuring all or a part of the Unit Mort-
gages by private mortgage insurance provided by one or
more private mortgage insurers selected by the Board of
Finance ; or (ii) insuring all or a part of the Unit Mortgages
through the Maryland Housing Fund or such other Federal,
State or municipal fund or other agency permitted by appli-
cable law to perform such insuring functions; or (iii) as-
signing the proceeds of the mortgage insurance to the
trustee for the holders of the Notes and Bonds (the "Bond-
holders") ; or (iv) such other security as the Board of
Finance may by resolution approve ; or (v) any combination
of (i), (ii), (iii) and (iv).
The principal amount of the Notes and Bonds will be paid
directly to, and will be disbursed by, the independent trustee
or trustees appointed by the Board of Finance pursuant to
this ordinance (the "Trustee"). No such moneys will be
either commingled with the City's general funds or made
subject to the absolute control of the City, except for such
limited supervision and checks as are deemed necessary or
desirable by the City to insure that the proceeds of the
Notes and Bonds are used to accomplish the public purposes
of the Enabling Laws and this ordinance. The Revenue
Note and Bond Loan Program Revenues, in the case of con-
struction financing for the developer, will be paid by the
developer to the Trustee as servicer for the Construction
Mortgages or as Trustee for the York — Woodbourne Resi-
dential Construction Loan Program, as stipulated in the
construction loan agreement or agreements to be entered
into by the City with an agent, or agents, for construction
1542 ORDINANCES Ord. No. 482
loan servicing of the Construction Mortgages. The Revenue
Note and Bond Loan Program Revenues, in the case of
financing for Mortgagors, will be paid by the ^Mortgagors
to the mortgage servicer or servicers for the York — Wood-
bourne Residential Mortgage Loan Program, as stipulated
in the servicing agreement or agreements to be entered
into by the City with a servicing agent or agents for the
Unit Mortgages, and the Revenue Note and Bond Loan Pro-
gram Revenues, less the servicing fee to be approved by the
Board of Finance, shall be paid by such servicer to the
Trustee. The transactions authorized hereby do not consti-
tute a public improvement or a capital project within the
meaning of any charter or statutory provision. The public
purposes expressed in this ordinance are intended to be
achieved by providing residential low and moderate cost
mortgage construction loans to the developer of the York —
Woodbourne Residential Development Program and resi-
dential low and moderate cost mortgage loans to the Mort-
gagors, each within Baltimore; preserving a healthy econ-
omy within Baltimore; fostering a healthy market for
residential real estate in Baltimore; fostering the purchase
of residential real property in Baltimore and providing
affordable housing within Baltimore, thus discouraging the
movement of taxpayers to surrounding subdivisions.
Sec. 2. And be it further ordained, That, the issuance,
sale and delivery of not exceeding $2,500,000, aggregate
principal amount of revenue notes, hereby designated
''Single-Family Construction Mortgage Revenue Notes
(York — Woodbourne Loan Program)", and the issuance,
sale and delivery of not exceeding $3,000,000, aggregate
principal amount of revenue bonds, hereby designated
"Single-Family Mortgage Revenue Bonds (York — Wood-
bourne Loan Progi^am)" are hereby authorized, subject to
the provisions of this ordinance, the proceeds to be used to
develop the York — Woodbourne Residential Construction
Loan Program and the York — Woodbourne Residential
Mortgage Loan Program as a part of the York — Wood-
bourne Residential Development Program, all as set forth
in this ordinance. In addition to the disbursement of Note
and Bond proceeds for construction loans and mortgage
loans under the York — Woodbourne Residential Construc-
tion Loan Program and the York — Woodbourne Residential
Mortgage Loan Program, Note and Bond proceeds may be
ORDINANCES 1543
disbursed (without limitation) (i) with respect to construc-
tion loans, to pay all costs of planninof, development and
construction of the owner-occupied residential units for the
York — Woodbourne Residential Development Program in-
cluding (without limitation) architect's and engineers' fees
and expenses, commitment fees, title insurance and recorda-
tion fees and taxes, land costs, land development costs,
interest during the construction period ,construction mate-
rials and equipment, construction contracting services and
payment and performance bonds, (ii) to pay the cost of
issuance and sale of the Notes and Bonds, including (with-
out limitation) costs of printing Notes and Bonds, the
official statement and other legal documents, costs of de-
livery of the Notes and Bonds, commitment fees, legal fees,
accounting fees, underwTiting costs, advertising costs, costs
of rating agency reviews and all other incidential related
expenses and (iii) (to the extent provided by resolution of
the Board of Finance adopted pursuant to this ordinance)
to fund a debt service reserve or other reserve funds for the
Notes and Bonds. The Notes and Bonds shall be solely and
exclusively payable from the Revenue Note and Bond Loan
Program Revenues and (to the extent provided by resolu-
tion of the Board of Finance adopted pursuant to this ordi-
nance) certain Note and Bond proceeds. The Notes and
Bonds shall be secured (to the extent provided by resolution
of the Boards of Finance adopted pursuant to this ordi-
nance) by (without limitation) the Construction Mortgages
and the Unit Mortgages. The Board of Finance may re-
quire, however, that the Notes and Bonds be additionally
secured by (i) insuring the Construction Mortgages and
Unit Mortgages through private mortgage insurance pro-
vided by one or more private mortgage insurers selected by
the Board of Finance; or (ii) insuring the Construction
Mortgages and Unit Mortgages through the Maryland
Housing Fund or such Federal, State, or municipal fund or
other agency permitted by applicable law to perform such
insuring functions; or (iii) assigning the proceeds of the
mortgage insurance to the Trustee for the Bondholders ; or
(iv) such other security as the Board of Finance may ap-
prove; or (v) any combination of (i), (ii), (iii) and (iv).
The aggregate principal amount of Notes issued, sold and
delivered pursuant to this ordinance shall not exceed
$2,500,000, and the aggregate principal amount of the Bonds
1544 ORDINANCES Ord. No. 482
issued, sold and delivered pursuant to this ordinance shall
not exceed $3,000,900, unless such amount or amounts, in
each case, shall be increased by an ordinance of the City
supplemental hereto. The City contemplates that, because
of inflation and other factors which may occur during the
development and construction periods of the Project Area,
the City will amend or supplement this ordinance from
time to time to increase such amounts or otherwise to pro-
vide for matters affecting the York — Woodbourne Residen-
tial Development Program. Nothing in this ordinance is
intended or shall be deemed to exclude the issuance of re-
funding bonds to refund all or a portion of the Notes or
Bonds, and the adoption of a subsequent ordinance or ordi-
nances for such purpose is expressly contemplated by this
ordinance.
In accordance with the Enabhng Laws, the City hereby
authorizes the Board of Finance, unless the City shall
otherwise prescribe prior to the issuance and delivery of
the Notes or Bonds, by resolution to take the following
actions and to make the following commitments on behalf
of the City :
(a) to determine and set forth the form, terms, provi-
sions (including redemption provisions and sinking fund
requirements, if any), manner or method of issuing and
selling (including negotiated or competitive bid sale) and
the time or times of issuance and any and all other details
of the Notes and Bonds ;
(b) to determine and set forth the form, terms and pro-
visions of construction loan agreements, servicing agree-
ments and all other construction and mortgage loan and
other documents in connection with the Notes and Bonds;
(c) to prepare and distribute, in conjunction with the
prospective underwriters or placement agents, if any, for
the Notes and Bonds, preliminary and final official state-
ments or placement memoranda or circulars as the Board
of Finance deems necessary and appropriate in connection
with the sale of the Notes and Bonds; provided, however,
that any such preliminary ofliiical statements or placement
memoranda or circulars shall be clearly marked to indicate
that they are subject to completion and amendment;
ORDINANCES 1545
(d) to determine the dates, times and places when an
underwriting or placement agreement or purchase contract
shall be submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds, such underwriting or placement agreement or pur-
chase contract to specify the interest rate or rates proposed
to be paid on the Notes and Bonds, the price at which such
Notes and Bonds are to be sold to such underwriters, place-
ment agents or purchasers, and such other matters as the
underwriters, placement agents or purchasers and the Board
of Finance may deem necessary or desirable in order to
effect the sale and delivery of the Notes and Bonds ;
(e) to determine the interest rate or rates to be paid
by the City on the Notes and Bonds in accordance with the
proposed underwriting or placement agreement or purchase
contract submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds ;
(f ) to appoint, as the Board of Finance deems necessary
and appropriate, a bank having trust powers, or a trust
company, as trustee for the Notes and Bonds to be issued
pursuant to this ordinance ; and
(g) to approve the form of trust agreements between
the City and the Trustee, which trust agreements may (i)
pledge or assign all or any part of the security of the Notes
and Bonds, (ii) contain reasonable and proper provisions
for the protection and enforcement of the rights and reme-
dies of the Bondholders, (iii) set forth the rights and
remedies of the Bondholders and the Trustee and may
restrict the individual right of action by the Bondholders,
and (iv) contain whatever other provisions are deemed rea-
sonable and proper for the security of the Bondholders.
Tlie Board of Finance shall perform any and all actions
necessary or deemed appropriate by such Board in order to
effect the issuance and sale of the Notes and Bonds in ac-
cordance with and pursuant to this ordinance and the
underwriting or placement agreements or purchase con-
tracts for the Notes and Bonds.
The Notes and Bonds shall be dated as of the first day of
the month next following the date on v/hich the Notes and
Bonds are sold unless the Board of Finance shall specify a
1546 ORDINANCES Ord. No. 482
different date by a resolution adopted pursuant to this ordi-
nance, and the Notes and Bonds shall bear interest at an
annual rate or rates payable semi-annually following the
date of the Notes and Bonds so that, if the Notes and Bonds
are dated October 1, 1981, interest on the Notes and Bonds
will be payable on March 1, 1982 and semi-annually there-
after each October 1 and ]\Iarch 1 unless the Board of
Finance shall specify more frequent or different dates by a
resolution adopted pursuant to this ordinance.
The Notes and Bonds issued hereunder shall mature on
the date or dates provided in a resolution of the Board of
Finance adopted pursuant to this ordinance, but the last
maturity of each series of Notes shall in no event exceed a
period of five (5) years from the date of such series of
Notes and the last maturity of each series of the Bonds
shall in no event exceed a period of forty (40) years from
the date of such series of Bonds. If the resolution of the
Board of Finance does not provide any maturity of maturi-
ties for the Notes, all of the Notes of a series shall mature
on the date five (5) years from the date of such series of
Notes. For example, if the Note is dated September 30,
1981, all of the Notes of such series will mature (in the
absence of a resolution of the Board of Finance determining
otherwise) on September 30, 1986. If the resolution of the
Board of Finance does not provide any maturity or maturi-
ties for the Bonds, all of the Bonds of a series shall mature
on the date thirty-two (32) years from the date of such
series of the Bonds. For example, if the Bond is dated Sep-
tember 30, 1981, all the Bonds of such series will mature
(in the absence of a resolution of the Board of Finance
determining otherwise on September 30, 2013.
Sec. 3. And be it further ordained. That, prior to the sale
of the Notes and Bonds, the Board of Finance, unless the
City shall otherwise prescribe, may determine by resolu-
tion:
(1) the provisions of trust between the City and the
Trustee ;
(2) the manner of execution, authentication, registra-
tion and transfer of the Notes and Bonds ;
(3) provisions for authentication and deHvery of the
Notes and Bonds ;
ORDINANCES 1547
(4) the provisions of the York — Woodbourne Residen-
tial Construction Loan Program and of the York — Wood-
bourne Residential Mortgage Loan Program, including (i)
the terms of the construction loans and of the Construction
Mortgages acquired under the York — Woodbourne Residen-
tial Construction Loan Program, (ii) the terms of the
mortgage loans and of the Unit Mortgages acquired under
the York — Woodbourne Residential Mortgage Loan Pro-
gram, and (iii) the terms of any servicing agreement be-
tween the City and a mortgage servicer for the Construction
Mortgages and the Unit Mortgages ;
(5) the terms of the private insurance, public insurance
or other security for the Notes and Bonds ;
(6) provisions for creation, holding and disbursement of
a construction loan and a program fund to be held by the
Trustee ;
(7) provisions for creation, holding and disbursement
of any other funds and accounts to be held by the Trustee ;
(8) provisions for the application of the Revenue Note
and Bond Loan Program Revenues ;
(9) provisions for the security for an investment of
moneys held by the Ti'ustee ;
(10) the details of the procedure for the redemption of
the Notes and Bonds ;
(11) remedies for Bondholders in the event of default;
(12) the duties, rights and immunities of the Ti^ustee;
(13) the manner of execution of instruments by Bond-
holders and the method of proof of o^\Tiership of the Notes
and Bonds ;
(14) provisions for modification of this ordinance;
(15) provisions for defeasance of the Notes and Bonds;
(16) the forms of the Notes and Bonds, coupons and the
Trustee's authentication certificate ; and
(17) such other matters in connection with the authori-
zation, issuance, security, sale and payment of the Notes
and Bonds as may be deemed appropriate by the Board of
Finance.
1548 ORDINANCES Ord. No. 482
Any resolution or resolutions adopted pursuant to this
ordinance shall be deemed to be of an administrative nature.
Sec. 4. And be it further ordained, That, the Board of
Finance may approve the issuance of the Notes and Bonds
in one or more series from time to time as the Board of
Finance by resolution adopted pursuant to this ordinance
deems necessary or appropriate in connection with the
schedule, as amended from time to time, of the York —
Woodbourne Residential Development Program. It is hereby
declared that singular terms shall include the plural and
plural the singular so that each provision of this ordinance
shall apply to each series of Notes and Bonds.
Sec. 5. And he it further ordained, That Mayor and City
Council may amend this ordinance from time to time as
necessary and appropriate to increase the authorization for
revenue notes and revenue bonds for the York — Woodbourne
Residential Development Program for increased costs or
other changes in the York — Woodbourne Residential De-
velopment Program for the Project areas, or othervdse.
Sec. 6. And he it further ordained, That, if any action or
any matter delegated to the Board of Finance, or author-
ized for implementation by the Board of Finance, shall not
be acted upon by the Board of Finance, such actions and
matters may be acted upon or implemented by a resolution
approved by the City Council of the City, which is subse-
quently approved by the Mayor or acting Mayor of the City.
Sec. 7. And he it further ordained, That the provisions of
this ordinance are severable, and if any provision, sentence,
clause, section or part thereof is held illegal, invalid or un-
constitutional or inapplicable to any person or circum-
stances, such illegality, invalidity or unconstitutionahty, or
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
ordinance or its applications to other persons or circum-
stances .It is hereby declared to be the legislative intent
that this ordinance would have been adopted if such illegal,
invalid or unconstitutional provision, sentence, clause, sec-
tion or part had not been included therein, and if the person
ORDINANCES 1549
or circumstances to which this ordinance or any part there-
of is inapplicable had been specifically exempted therefrom.
Sec. 8. And be it further ordained, That, this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
No. 483
(Council No. 861)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
THAMES POINT
RESIDENTIAL DEVELOPMENT PROGRAM
FOR the purpose of authorizing and providing for the
issuance, sale and delivery, by the Mayor and City Council
of Baltimore (the "City") of its revenue obligations for
the Thames Point Residential Development Program (as
defined in this ordinance) consisting of its revenue notes,
to be used in part to pay the costs of construction of resi-
dential units as described in this ordinance, designated
"Single-Family Construction Mortgage Revenue Notes
(Thames Point Loan Program)" in the aggregate prin-
cipal amount not exceeding $7,000,000, and of its revenue
bonds, to be used in part to provide mortgage financing
for the purchasers of owner-occupied residential units
described in this ordinance, designated "Single-Family
Mortgage Revenue Bonds (Thames Point Loan Pro-
gram) " in the aggregate principal amount not to exceed
$10,000,000, each pursuant to the provisions of Subsec-
tions (51) and (50) of Article II of the Charter of
Baltimore City (1964 Revision, as amended), in order to
use the proceeds for the sole and exclusive purpose of
financing the Thames Point Residential Construction
Loan Program (as defined in this ordinance) each as
part of the Thames Point Residential Development Pro-
gram (as defined in this ordinance) for the Project
1550 ORDINANCES Ord. No. 483
Areas within the Thames Point Area (each as defined in
this ordinance) in the City of Baltimore, including (with-
out limitation) the purchase, the contracting to purchase
or the acquisition of mortgage loans bearing interest rates
below those generally prevailing (at the time of purchase
or contract to purchase) in the private mortgage market
(to the extent such a market exists at that time) for
loans of comparable quality and term in the City of
Baltimore, as provided in this ordinance, for the public
purpose of developing readily available sources of money
at low and moderate cost for the Thames Point Resi-
dential Development Program (as defined in this ordi-
nance) for the Project Areas within the Thames Point
Area (each as defined in this ordinance) within the City
of Baltimore; making certain legislative findings, among
others, concerning the public benefit and purpose of such
revenue notes and revenue bonds ; providing that (a) such
revenue notes and bonds shall be payable solely and only
from Revenue Note and Bond Loan Program Revenues
(as defined in this ordinance) and (to the extend pro-
vided by resolution of the Board of Finance of the City
adopted pursuant to this ordinance) certain proceeds or
such revenue notes and revenue bonds and (b) such reve-
nue notes and revenue bonds shall not ever constitute,
within the meaning of Section 7 of Article XI of the
Constitution of Maryland or any other constitutional,
statutory or charter provision or otherwise (i) a debt
or general obligation of the City or any other political
subdivision or (ii) a pledge of or an involvement of the
faith and credit or the taxing powers of the City or any
other political subdivision; authorizing and empowering
the Board of Finance of the City by resolution (i) to
determine and set forth certain matters pertaining to the
the revenue notes and the revenue bonds including (with-
out limitation) the form, terms, provisions (including
redemption provisions and sinking fund requirements, if
any), manner or method of issuing and selling (including
negotiated as well as competitive bid sale) , and the time
or times of issuance and any and all other details of such
revenue notes and revenue bonds, (ii) to do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such revenue notes and revenue
bonds, including (without limitation) to approve the
form of construction loan agreements in connection witti
ORDINANCES 1551
such revenue notes, to approve the form of servicing
agreements in connection with such revenue notes and
bonds, to prepare and distribute prehminary and final
official statements or preliminary and final placement
memoranda or circulars in connection with the sale of
such revenue notes and revenue bonds, to determine the
dates, times and places when underwriting or placement
agreements or purchase agreements shall be submitted by
the underwriters or placement agents for such revenue
notes and revenue bonds or the purchasers of such reve-
nue notes or revenue bonds and to determine certain
of the terms of such agreements, to determine the interest
rate or rates to be paid by the City on such revenue notes
and revenue bonds and to appoint a trustee for such reve-
nue notes and revenue notes and revenue bonds, and (iii)
to approve the form of trust agreements between the City
and the trustee, which trust agreements may (a) pledge
or assign all or any part of the security for such revenue
notes and revenue bonds, (b) contain reasonable and
proper provisions for the protection and enforcement of
the rights and remedies of the holders of such revenue
notes and revenue bonds, (c) set forth the rights and
remedies of the holders of such revenue notes and reve-
nue bonds and of the trustee and restrict the individual
right of action by the holders of such revenue notes and
revenue bonds, and (d) contain whatever other provisions
are deemed reasonable and proper for the security of the
holders of such revenue notes and revenue bonds ; provid-
ing that all or a portion of such revenue notes and reve-
nue bonds may be refunded pursuant to a subsequent
ordinance of the City; and generally providing for and
determining various matters in connection with the au-
thorization, issuance, security, sale and payment of such
revenue obligations for the Thames Point Residential
Development Program (as defined in this ordinance).
RECITALS
A. Subsection (51) — Loans to Facilitate Low and
Moderate Cost Residential Mortgage Financing Within
the City, of Article II of the Charter of Baltimore City
(1964 Revision, as amended) ("Subsection 51'') author-
izes Mayor and City Council of Baltimore (the "City")
to borrow money by the issuance and sale of its revenue
1552 ORDINANCES Ord. No. 483
notes and revenue bonds and to utilize the proceeds of the
notes and bonds to develop an owner-occupied residential
mortgage loan program in the City of Baltimore, Mary-
land ("Baltimore") to provide readily available sources
of money at low and moderate cost for such residential
mortgage loans within Baltimore through the purchase,
contracting to purchase or other acquisition of mortgage
loans (i) bearing interest rates below those generally pre-
vailing (at the time of purchase or contract to purchase)
in the private mortgage market (to the extent such a
market exists at that time) for loans of comparable qual-
ity and term in Baltimore and (ii) having whatever other
terms and characteristics as may be determined by the
City. Subsection (51) requires that revenue notes and
revenue bonds authorized thereunder shall be issued pur-
suant to Subsection (50) — Revenue Bonds and Obliga-
tions, of the Charter of Baltimore City (1964 Revision,
as amended).
B. Subsection (50) — Revenue Bonds and Obligations,
of Article II of the Charter of Baltimore City (1964 Re-
vision, as amended) (''Subsection (50)") authorizes the
City to borrow money through the isuance and sale of
its revenue notes and revenue bonds for the accomplish-
ment of any of the purposes, objects and powers of the
City. Revenue notes and revenue bonds issued pursuant
to Subsection (50) shall be payable, as to both principal
and interest, solely from and secured solely by (i) the
revenues from or arising in connection with the prop-
erty, facilities, developments and improvements whose
financing is undertaken by issuance of the notes or
bonds, (ii) the revenues from or arising in connection
with any contracts, mortgages or other securities pur-
chased or otherwise acquired with the proceeds of the
notes or bonds, (iii) the contracts, mortgages or other
securities purchased or otherwise acquired with the pro-
ceeds of the notes or bonds, or (iv) any combination of
(i), (ii) or (iii).
C. Subsection (50) further authorizes the City to
authorize and empower the Board of Finance of the City
by resolution (i) to determine and set forth certain mat-
ters pertaining to the revenue notes and revenue bonds,
(without limitation) the forms, terms, provisions, man-
ORDINANCES 1553
ner or method of issuing and selling (including negoti-
ated as well as competitive bid sale), and the time or
times of issuance and any and all other details of such
revenue notes or revenue bonds, (ii) to do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such revenue notes or revenue
bonds, and (iii) to approve the form of a trust agreement
between the City and the trustee, which trust agreement
may be (a) pledge or asign all or any part of the secur-
ity for such notes or bonds, (b) contain reasonable and
proper provisions for the protection and enforcemnt of
the rights and remedies of the holders of such notes or
bonds, (c) set forth the rights and remedies of the hold-
ers of such notes or bonds and of the trustee and restrict
the individual rights of action by the holders of the notes
or bonds, and (d) contain whatever other provisions are
deemed reasonable and proper for the security of the
holders of such notes or bonds.
D. Subsection (51) and Subsection (50) are referred
to herein collectively as the ''Enabling Laws."
E. Subsection (51) declares, among other things, that
borrowing money thereunder by the issuance of revenue
notes or revenue bonds shall be for the essential public
purpose of (i) preserving a healthy and viable economy
within Baltimore, (ii) encouraging and facilitating the
creation or maintenance of a healthy and ready market
for residential real estate in Baltimore, including (with-
out limitation) the ready sale and purchase of existing
residential real estate and the purchase, acquisition, con-
struction, erection or development of buildings or struc-
tures for owner-occupied residential purposes, including
any land necessary therefor, within the boundaries of
Baltimore, (iii) encouraging and facilitating the pur-
chase of residential real property in Baltimore in order
to maintain and encourage growth in real property
assessments in Baltimore, and (iv) preserving the pub-
lic health, safety and welfare of the residents of Balti-
more by enabling residents of Baltimore of all income
levels to finance readily their housing needs in Baltimore,
thus discouraging the proliferation of vacant and sub-
standard housing in Baltimore and retarding or reversing
the movement of financially self sufficient taxpayers to
surrounding subdivisions.
1554 ORDINANCES Ord. No. 483
F. The Project Area of the Thames Point Residential
Development Program shall be located in the City of
Baltimore at 1900 Thames Street. Consisting of single
family residential dwelling units including but not limited
to townhouse, condominiums, cooperatives, or other resi-
dential structures.
G. As part of the development of the Thames Point
Area, the City seeks to promote owner-occupied residen-
tial units within Baltimore and the Thames Point Area
offering a variety of good housing accommodations in an
attractive environment (such program as it may have
heretofore or may hereafter be amended, or supple-
mented or extended to other areas from time to time
called the "Thames Point Residential Development Pro-
gram").
H. Pursuant to the Thames Point Residential Devel-
opment Program, the City proposes to provide necessary
construction financing as determined from time to time
(such program as it may have heretofore or may here-
after be amended, supplemented or extended to other
areas from time to time called the ''Thames Point Resi-
dential Construction Loan Program" for developers and
builders (herein ''developers"), and necessary long-term
mortgage financing (such program as it may have here-
tofore or may hereafter be amended, supplemented or ex-
tended to other areas from time to time called "Thames
Point Residential Mortgage Loan Program") for pur-
chasers (herein "mortgagors") of residential units in the
Project Area through several issues of the City's revenue
notes and revenue bonds.
L Pursuant to the Enabling Laws, the Citj^ has deter-
mined to issue and sell in an amount not to exceed
$7,000,000, aggregate principal amount of its "Single-
Family Construction Mortgage Revenue Notes (Thames
Point Loan Program)", (the "Notes") and to use the
proceeds of the Notes to provide construction financing
for development of an owTier-occupancy residential loan
program for the Thames Point Residential Development
Program which loan program will include (without
limitation) the financing of construction loans for the
developer.
ORDINANCES 1555
J. Pursuant to the Enabling Laws, the City has de-
termined to issue and sell in an amount not to exceed
$10,000,000, aggregate principal amount of its ''Single-
Family Mortgage Revenue Bonds (Thames Point Loan
Program) ", (the "Bonds") and to use the proceeds of the
Bonds, to develop an owner-occupancy residential loan
program for the Thames Point Residential Development
Program, which loan program will include (without
limitation) the financing of mortgage loans for the Mort-
gagors.
K. The City has determined to issue and sell the
Notes and the Bonds to effectuate the public purpose of
(i) preserving a healthy and viable economy within
Baltimore, (ii) encouraging and facilitating the creation
or maintenance of a healthy and ready market for resi-
dential real estate in Baltimore, including (without
limitation) the ready sale and purchase of existing resi-
dential real estate and the purchase, acquisition, con-
struction, erection or development of buildings or struc-
tures for owner-occupied residential purposes, including
any land necessary therefor, within the boundaries of
Baltimore, (iii) encouraging and facilitating the pur-
chase of residential real property in Baltimore in order
to maintain and encourage growth in real property assess-
ments in Baltimore, and (iv) preserving the public
health, safety and welfare of the residents of Baltimore
by enabling residents of Baltimore of all income levels to
finance readily their housing needs in Baltimore, thus dis-
couraging the proliferation of vacant and substandard
housing in Baltimore and retarding or reversing the
movement of financially self sufficient taxpayers to sur-
rounding subdivisions.
L. Pursuant to authority provided in Article XI-H
of the Constitution of Maryland and laws enacted pur-
suant thereto, the City from time to time has general
funds available for use to make on contract to make or to
guarantee or insure financial loans to any person or other
legal entity to be used for or in connection with the pur-
chase, acquisition, construction, erection or development
of buildings or structures, including any land necessary
therefor, within the boundaries of Baltimore, which
buildings or structures are to be used or occupied for
residential purposes. Pursuant to such authority, or as
1556 ORDINANCES Ord. No. 483
otherwise may be permitted by applicable law, the City,
acting through the Department of Housing and Commu-
nity Development of the City and the Board of Estimates
of the City, may determine from time to time to make,
guarantee or insure financial loans in connection with the
owner-occupied residential units for the Project Areas
to supplement the proceeds of the Notes and Bonds to de-
velop the Thames Point Residential Construction Loan
Program and the Thames Point Residential Mortgage
Loan Program as an integral part of the Thames Point
Residential Development Program.
M. The City has determined to use, in part, the pro-
ceeds of the Bonds to provide mortgage financing to the
purchasers of the owner-occupied residential units in the
Project Areas pursuant to the Inner Harbor Residential
Development Program by making loans to finance such
purchases.
Section 1. Be it ordained by Mayor and City Council of
Baltimore, That, acting pursuant to the Enabling Laws, it is
hereby found and determined, as follows :
(1) The issuance of revenue notes and revenue bonds
by the City pursuant to the Enabling Laws to develop the
Thames Point Residential Construction Loan Program and
the Thames Point Residential Mortgage Loan Program
each as a part of the Thames Point Residential Development
Program in Baltimore through the purchase, contracting to
purchase or other acquisition of mortgage loans (i) bearing
interest rates below those generally prevailing (at the time
of purchase or contract to purchase) in the private mort-
gage market (to the extent such a market exists at that
time) for loans of comparable quality and term in Baltimore
and (ii) having the terms and characteristics as determined
by this ordinance and the Board of Finance acting pursuant
to this ordinance, will encourage and facilitate the purchase
of residential property in the Project Area by residents of
Baltimore of all income levels.
(2) The accomplishment of the transactions contem-
plated and authorized by this ordinance, including (with-
out limitation) the development of the Thames Point Resi-
dential Construction Loan Program and the Thames Point
Residential Mortgage Loan Program, will accomplish a pub-
ORDINANCES 1557
lie purpose and meet existing public needs by (i) preserving
a healthy and viable economy within Baltimore, (ii) encour-
aging and facilitating the creation or maintenance of a
healthy and ready market for residential real estate in
Baltimore, including (without limitation) the ready sale and
purchase of existing residential real estate and the pur-
chase, acquisition, construction, erection or development of
buildings or structures for owner-occupied residential pur-
poses, including any land necessary therefor, within the
boundaries of Baltimore City, (iii) encouraging and facili-
tating the purchase of residential real property in Balti-
more in order to maintain and encourage growth in real
property assessments in Baltimore, and (iv) preserving the
public health, safety and welfare of the residents of Balti-
more by enabling residents of Baltimore of all income levels
to finance readily their housing needs in Baltimore, thus
discouraging the proliferation of vacant and substandard
housing in Baltimore and retarding or reversing the move-
ment of financially self sufficient taxpayers to surrounding
subdivisions.
(3) Neither notes or bonds nor interest coupons issued
under the authority of the Enabling Laws constitute (i) a
debt or general obligation of the City or any other political
subdivisions, or (ii) a pledge of or an involvement of the
faith and credit or the taxing powers of the City or any
other political subdivision, all within the meaning of Section
7 of Article XI of the Constitution of Maryland or any other
constitutional, statutory or charter provision. The principal
of and interest on the Notes and Bonds shall be payable
from, and secured by, (i) an assignment of payments, pro-
ceeds, charges, rents and any other income or payments (ex-
cept certain escrow payments) to be delivered in cash by or
for the account of the City from or related to the Thames
Point Residential Construction Loan Program and the
Thames Point Residential Mortgage Loan Program, includ-
ing (without limitation) payments (as determined by reso-
lution of the Board of Finance adopted pursuant to this
ordinance) of principal and interest on construction mort-
gage loans made by the City to the developer of o^^^ler-
occupied residential units in the Thames Point Residential
Development Program and on mortgage loans made by the
City to Mortgagors (all such income or payments called the
"Revenue Note and Bond Loan Program Revenues") and
1558 ORDINANCES Ord. No. 483
(ii) (to the extent provided by resolution of the Board of
Finance adopted pursuant to this ordinance) proceeds of
the Notes and Bonds. The principal of and interest on the
Notes shall be secured by (without limitation) construc-
tion mortgages from the developer in connection with the
Thames Point Residential Construction Loan Program (the
''Construction Mortgages"). The principal of and interest
on the Bonds shall be secured by (without limitation)
mortgages from Mortgagors in connection with the Thames
Point Residential Mortgage Loan Program (the ''Unit
Mortgages"). The Notes and Bonds may be additionally se-
cured (without in any way specifying or limiting the terms
of such additional security) by (i) insuring all or a part of
the Unit Mortgages by private mortgage insurance pro-
vided by one or more private mortgage insurers selected by
the Board of Finance; or (ii) insuring all or a part of the
Unit Mortgages through the Maryland Housing Fund or
such other Federal, State or municipal fund or other agency
permitted by applicable law to perform such insuring func-
tions; or (iii) assigning the proceeds of the mortgage in-
surance to the trustee for the holders of the Notes and
Bonds (the "Bondholders") ; or (iv) such other security
as the Board of Finance may by resolution approve; or (v)
any combination of (i), (ii), (iii) and (iv).
The principal amount of the Notes and Bonds will be
paid directly to, and will be disbursed by, the independent
trustee or trustees appointed by the Board of Finance pur-
suant to this ordinance (the "Trustee"). No such monej^s
will be either commingled with the City's general funds or
made subject to the absolute control of the City, except for
such limited supervision and checks as are deemed neces-
sary or desirable by the City to insure that the proceeds of
the Notes and Bonds are used to accomplish the public pur-
poses of the Enabling Laws and this ordinance. The Reve-
nue Note and Bond Loan Program Revenues, in the case of
construction financing for the developer, will be paid by the
developer to the Trustee as servicer for the Construction
Mortgages or as Trustee for the Thames Point Residential
Construction Loan Program, as stipulated in the construc-
tion loan agreement or agrements to be entered into by the
City with an agent, or agents, for construction loan servic-
ing of the Construction Mortgages. The Revenue Note and
Bond Loan Program Reveunes, in the case of financing for
ORDINANCES 1559
Mortgagors, will be paid by the Mortgagors to the mortgage
servicer or servicers for the Thames Point Residential
Mortgage Loan Program, as stipulated in the servicing
agreement or agreements to be entered into by the City
with a servicing agent or agents for the Unit Mortgages, and
the Revenue Note and Bond Loan Program Revenues, less
the servicing fee to be approved by the Board of Finance,
shall be paid by such servicer to the Trustee. The transac-
actions authorized hereby do not constitute a public im-
provement or a capital project within the meaning of any
charter or statutory provision. The public purposes ex-
pressed in this ordinance are intended to be achieved by
providing residential low and moderate cost mortgage con-
struction loans to the developer of the Thames Point Resi-
dential Development Program and residential low and mod-
erate cost mortgage loans to the Mortgagors, each within
Baltimore ; preserving a healthy economy within Baltimore ;
fostering a healthy market for residential real estate in
Baltimore; fostering the purchase of residential real prop-
erty in Baltimore and providing affordable housing within
Baltimore, thus discouraging the movement of taxpayers to
surrounding subdivisions.
Sec. 2. And be it further ordained, That, the issuance,
sale and delivery of not exceding $7,000,000, aggregate
principal amount of revenue notes, hereby designated
"Single-Family Construction Mortgage Revenue Notes
(Thames Point Loan Program) ", and the issuance, sale and
delivery of not exceeding $10,000,000, aggregate principal
amount of revenue bonds, hereby designated ''Single-
Family Mortgage Revenue Bonds (Thames Point Loan
Program) " are hereby authorized, subject to the provisions
of this ordinance, the proceeds to be used to develop the
Thames Point Residential Construction Loan Program and
the Thames Point Residential Mortgage Loan Program as
a part of the Thames Point Residential Development Pro-
gram, all as set forth in this ordinance. In addition to the
disbursement of Note and Bond proceeds for construction
loans and mortgage loans under the Thames Point Residen-
tial Construction Loan Program and the Thames Point
Residential Mortgage Loan Program, Note and Bond pro-
ceeds may be disbursed (without limitation) (i) with re-
spect to construction loans, to pay all costs of planning, de-
velopment and construction of the owner-occupied residen-
1560 ORDINANCES Ord. No. 483
tial units for the Thames Point Residential Development
Program including (without limitation) architect's and
engineer's fees and expenses, commitment fees, title insur-
ance and recordation fees and taxes, land costs, land devel-
opment costs, interest during the construction period, con-
struction materials and equipment, construction contracting
services and payment and performance bonds, (ii) to pay
the cost of issuance and sale of the Notes and Bonds, in-
cluding (without limitation) costs of printing Notes and
Bonds, the official statement and other legal documents,
costs of delivery of the Notes and Bonds, commitment fees,
legal fees, accounting fees, underwriting costs, advertising
costs, cost of rating agency reviews and all other incidental
related expenses and (iii) (to the extent provided by reso-
lution of the Board of Finance adopted pursuant to this
ordinance) to fund a debt service reserve or other reserve
funds for the Notes and Bonds. The Notes and Bonds shall
be solely and exclusively payable from the Revenue Note
and Bond Loan Program Revenues and (to the extent pro-
vided by resolution of the Board of Finance adopted pursu-
ant to this ordinance) certain Note and Bond proceeds. The
Notes and Bonds shall be secured (to the extent provided
by resolution of the Board of Finance adopted pursuant to
this ordinance) by (without limitation) the Construction
Mortgages and the Unit Mortgages. The Board of Finance
may require, however, that the Notes and Bonds be addi-
tionally secured by (i) insuring the Construction Mort-
gages and Unit Mortgages through private mortgage in-
surance provided by one or more private mortgage insurers
selected by the Board of Finance; or (ii) insuring the Con-
struction Mortgages and Unit Mortgages through the
Maryland Housing Fund or such Federal, State, or Munici-
pal fund or other agency permitted by applicable law to
perform such insuring functions ; or (iii) assigning the pro-
ceeds of the mortgage insurance to the Trustee for the
Bondholders; or (iv) such other security as the Board of
Finance may approve; or (v) any combination of (i), (ii),
(iii) and (iv). The aggregate principal amount of Notes
issued, sold and delivered pursuant to this ordinance shall
not exceed $7,000,000, and the aggregate principal amount
of the Bonds issued, sold and delivered pursuant to this
ordinance shall not exceed $10,000,000, unless such amount
or amounts, in each case, shall be increased by an ordinance
of the City supplmental hereto. The City contemplates that,
ORDINANCES 1561
because of inflation and other factors which may occur dur-
ing the development and construction periods of the Project
Area, the City will amend or supplement this ordinance
from time to time to increase such amounts or otherwise to
provide for matters affecting the Thames Point Residential
Development Program. Nothing in this ordinance is in-
tended or shall be deemed to exclude the issuance of re-
funding bonds to refund all or a portion of the Notes or
Bonds, and the adoption of a subsequent ordinance or or-
dinances for such purpose is expressly contemplated by this
ordinance.
In accordance with the Enabling Laws, the City hereby
authorizes the Board of Finance, unless the City shall other-
wise prescribe prior to the issuance and delivery of the
Notes or Bonds, by resolution to take the following actions
and to make the following commitments on behalf of the
City:
(a) to determine and set forth the form, terms, provi-
sions (including redemption provisions and sinking fund
requirements, if any), manner or method of issuing and
selling (including negotiated or competitive bid sale) and
the time or times of issuance and any and all other details
of the Notes and Bonds ;
(b) to determine and set forth the form, terms and pro-
visions of construction loan agreements, servicing agree-
ments and all other construction and mortgage loan and
other documents in connection with the Notes and Bonds;
(c) to prepare and distribute, in conjunction with the
prospective underwriters or placement agents, if any, for
the Notes and Bonds, preliminary and final official state-
ments or placement memoranda or circulars as the Board
of Finance deems necessary and appropriate in connection
with the sale of the Notes and Bonds; provided, however,
that any such preliminary official statements or placement
memoranda or circulars shall be clearly marked to indicate
that they are subject to completion and amendment;
(d) to determine the dates, times and places when an
underwriting or placement agreement or purchase contract
shall be submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds, such underwriting or placement agreement or pur-
1562 ORDINANCES Ord. No. 483
chase contract to specify the interest rate or rates pro-
posed to be paid on the Notes and Bonds, the price at which
such Notes and Bonds are to be sold to such underwriters,
placement agents or purchasers, and such other matters as
the underwriters, placement agents or purchasers and the
Board of Finance may deem necessary or desirable in order
to effect the sale and delivery of the Notes and Bonds ;
(e) to determine the interest rate or rates to be paid by
the City on the Notes and Bonds in accordance with the
proposed underwriting or placement agreement or purchase
contract submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds ;
(f ) to appoint, as the Board of Finance deems necessary
and appropriate, a bank having trust powers, or a trust
company, as trustee for the Notes and Bonds to be issued
pursuant to this ordinance ; and
(g) to approve the form of trust agreements between
the City and the Trustee, which trust agreements may (i)
pledge or assign all or any part of the security of the Notes
and Bonds, (ii) contain reasonable and proper provisions
for the protection and enforcement of the rights and rem-
edies of the Bondholders, (iii) set forth the rights and
remedies of the Bondholders and the Trustee and may re-
strict the individual right of action by the Bondholders, and
(iv) contain whatever other provisions are deemed reason-
able and proper for the security of the Bondholders.
The Board of Finance shall perform any and all actions
necessary or deemed appropriate by such Board in order to
effect the issuance and sale of the Notes and Bonds in ac-
cordance with and pursuant to this ordinance and the un-
derwriting or placement agreements or purchase contracts
for the Notes and Bonds.
The Notes and Bonds shall be dates as of the first day of
the month next following the date on which the Notes and
Bonds are sold unless the Board of Finance shall specify a
different date by a a resolution adopted pursuant to this
ordinance, and the Notes and Bonds shall bear interest at
an annual rate or rates payable semi-annually following the
date of the Notes and Bonds so that, if the Notes and Bonds
are dated October 1, 1981, interest on the Notes and Bonds
ORDINANCES 1563
will be payable on March 1, 1982 and semi-annually there-
after each October 1 and March 1 unless the Board of
Finance shall specify more frequent or different dates by
a resolution adopted pursuant to this ordinance.
The Notes and Bonds issued hereunder shall mature on
the date or dates provided in a resolution of the Board of
Finance adopted pursuant to this ordinance, but the last
maturity of each series of Notes shall in no event exceed a
period of five (5) years from the date of such series of
Notes and the last maturity of each series of the Bonds
shall in no event exceed a period of forty (40) years from
the date of such series of Bonds. If the resolution of the
Board of Finance does not provide any maturity or maturi-
ties for the Notes, all of the Notes of a series shall mature on
the date five (5) years from the date of such series of
Notes. For example, if the Note is dated September 30,
1981, all of Notes of such series will mature (in the ab-
sence of a resolution of the Board of Finance determining
otherwise) on September 30, 1986. If the resolution of the
Board of Finance does not provide any maturity or maturi-
ties for the Bonds, all of the Bonds of a series shall mature
on the date thirty-two (32) years from the date of such
series of the Bonds. For example, if the Bond is dated
September 30, 1981, all the Bonds of such series will mature
(in the absence of a resolution of the Board of Finance de-
termining otherwise) on September 30, 2013.
Sec. 3. And be it further ordained, That, prior to the sale
of the Notes and Bonds, the Board of Finance, unless the
City shall otherwise prescribe, may determine by resolution :
(1) the provisions of trust between the City and the
Trustee ;
(2) the manner of execution, authentication, registra-
tration and transfer of the Notes and Bonds ;
(3) provisions for authentication and delivery of the
Notes and Bonds ;
(4) the provision of the Thames Point Residential Con-
struction Loan Program and of the Thames Point Residen-
tial Mortgage Loan Program, including (i) the terms of the
construction loans and of the Construction Mortgages ac-
quired under the Thames Point Residential Construction
1564 ORDINANCES Ord. No. 483
Loan Program, (ii) the terms of the mortgage loans and
of the Unit Mortgages acquired under the Thames Point
Residential Mortgage Loan Program, and (iii) the terms
of any servicing agreement between the City and a mort-
gage servicer for the Construction Mortgages and the Unit
Mortgages ;
(5) the terms of the private insurance, public insurance
or other security for the Notes and Bonds ;
(6) provisions for creation, holding and disbursement
of a construction loan and a program fund to be held by the
Trustee ;
(7) provisions for creation, holding and disbursement
of any other funds and accounts to be held by the Trustee ;
(8) provisions for the application of the Revenue Note
and Bond Loan Program Revenues ;
(9) provisions for the security for and investment of
moneys held by the Trustee ;
(10) the details of the procedure for the redemption of
the Notes and Bonds ;
(11) remedies for Bondholders in the event of default;
(12) the duties, rights and immunities of the Trustee;
(13) the manner of execution of instruments by Bond-
holders and the method of proof of ownership of the Notes
and Bonds;
(14) provisions for modification of this ordinance;
(15) provisions for defeasance of the Notes and Bonds;
(16) the forms of the Notes and Bonds, coupons and
the Trustee's authentication certificate ; and
(17) such other matters in connection with the authori-
zation, issuance, security, sale and payment of the Notes
and Bonds as may be deemed appropriate by the Board of
Finance.
Any resolution of resolutions adopted pursuant to this
ordinance shall be deemed to be of an administrative nature.
Sec. 4. And be it further ordained, That, the Board of
Finance may approve the issuance of the Notes and Bonds
in one or more series from time to time as the Board of
Finance by resolution adopted pursuant to this ordinance
ORDINANCES 1565
deems necessary or appropriate in connection with the
schedule, as amended from time to time, of the Thames
Point Residential Development Program. It is hereby de-
clared that singular terms shall include the plural and plural
the singular so that each provision of this ordinance shall
apply to each series of Notes and Bonds.
Sec. 5. And be it further ordained, That Mayor and City
Council may amend this ordinance from time to time as
necessary and appropriate to increase the authorization for
revenue notes and revenue bonds for the Thames Point
Residential Development Program for increased costs or
other changes in the Thames Point Residential Develop-
ment Program for the Project areas, or otherwise.
Sec. 6. And he it further ordained, That, if any action or
any matter delegated to the Board of Finance, or author-
ized for implementation by the Board of Finance, shall not
be acted upon by the Board of Finance, such actions and
matters may be acted upon or implemented by a resolution
approved by the City Council of the City, which is subse-
quently approved by the Mayor or acting Mayor of the
City.
Sec. 7. And be it further ordained, That, the provisions
of this ordinance are severable, and if any provision, sen-
tence, clause, section or part thereof is held illegal, invalid
or unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity or unconstitutionality, or
inapplicability shall not affect or impair any of the remain-
ing provisions, sentences, clauses, sections, or parts of this
ordinance or its applications to other persons or circum-
stances. It is hereby declared to be the legislative intent
that this ordinance would have been adopted if such illegal,
invalid or unconstiutional provision, sentence, clause, sec-
tion or part had not been included therein, and if the person
or circumstances to which this ordinance or any part thereof
is inapplicable had been specifically exempted therefrom.
Sec. 8. And be it further ordained. That, this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor,
1566 ORDINANCES Ord. No. 484
No. 484
(Ck)uncil No. 862)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
SUMiMIT KEEP
Residential Development Program
FOR the purpose of authorizing and providing for the issu-
ance, sale and delivery, by the Mayor and City Council of
Baltimore (the ''City") of its revenue obhgations for the
Summit Keep Residential Development Progi^am (as de-
fined in this ordinance) consisting of its revenue notes,
to be used in part to pay the costs of construction of resi-
dential units as described in this ordinance, designated
"Single-Family Construction Mortgage Revenue Notes
(Summit Keep Loan Program)" in the aggregate princi-
pal amount not exceeding $2,500,000, and of its revenue
bonds, to be used in part to provide mortgage financing
for the purchasers of owner-occupied residential units
described in this ordinance, designated ''Single-Family
Mortgage Revenue Bonds (Summit Keep Loan Pro-
gram)" in the aggregate principal amount not exceeding
$3,000,000, each pursuant to the provisions of Subsec-
tions (51) and (50) of Article II of the Charter of Balti-
more City (1964 Revision, as amended), in order to use
the proceeds for the sole and exclusive purpose of financ-
ing the Summit Keep Residential Construction Loan Pro-
gram (as defined in this ordinance) each as part of the
Summit Keep Residential Development Program (as de-
fined in this ordinance) for the Project Areas within the
Summit Keep Area (each as defined in this ordinance) in
the City of Baltimore, including (without limitation) the
purchase, the contracting to purchase or the acquisition
of mortgage loans bearing interest rates below those gen-
erally prevailing (at the time of purchase or contract to
purchase) in the private mortgage market (to the extent
such a market exists at that time) for loans of compara-
ble quality and term in the City of Baltimore, as provided
in this ordinance, for the public purpose of developing
readily available sources of money at low and moderate
cost for the Summit Keep Residential Development Pro-
gram (as defined in this ordinance) for the Project Ai'eas
ORDINANCES 1567
within the Summit Keep Area (each as defined in this
ordinance) within the City of Baltimore; making certain
legislative findings, among others, concerning the public
benefit and purpose of such revenue notes and revenue
bonds; providing that (a) such revenue notes and revenue
bonds shall be payable solely and only from Revenue Note
and Bond Loan Program Revenues (as defined in this
ordinance) and (to the extent provided by resolution of
the Board of Finance of the City adopted pursuant to this
ordinance) certain proceeds or such revenue notes and
revenue bonds and (b) such revenue notes and revenue
bonds shall not ever constitute, within the meaning of
Section 7 of Article XI of the Constitution of Maryland
or any other constitutional, statutory or charter provi-
sions or otherwise (i) a debt or general obligation of the
City or any other political subdivision or (ii) a pledge of
or an involvement of the faith and credit or the taxing
powers of the City or any other political subdivision;
authorizing and empowering the Board of Finance of the
City by resolution (i) to determine and set forth certain
matters pertaining to the revenue notes and the revenue
bonds including (without limitation) the form, terms,
provisions (including redemption provisions and sinking
fund requirements, if any), manner or method of issuing
and selling (including negotiated as well as competitive
bid sale) , and the time or times of issuance and any and
all other details of such revenue notes and revenue bonds,
(ii) to do any and all things necessary, proper or expedi-
ent in connection with the issuance and sale of such reve-
nue notes and revenue bonds, including (without limita-
tion) to approve the form of construction loan agreements
in connection with such revenue notes, to approve the
form of servicing agreements in connection with such
revenue notes and bonds, to prepare and distribute pre-
liminary and final official statements or preliminary and
final placement memoranda or circulars in connection
with the sale of such reevnue notes and revenue bonds,
to determine the dates, times and places when underwrit-
ing or placement agreements or purchase agreements
shall be submitted by the underwriters or placement
agents for such revenue notes and revenue bonds or the
purchasers of such revenue notes or revenue bonds and
to determine certain of the terms of such agreements, to
determine the interest rate or rates to be paid by the City
1568 ORDINANCES Ord. No. 484
on such revenue notes and revenue bonds and to appoint
a trustee for such revenue notes and revenue notes and
revenue bonds, and (iii) to approve the form of trust
agreements between the City and the trustee, which trust
agreements may (a) pledge or assign all or any part of
the security for such revenue notes and revenue bonds,
(b) contain reasonable and proper provisions for the pro-
tection and enforcement of the rights and remedies of
the holders of such revenue notes and revenue bonds, (c)
set forth the rights and remedies of the holders of such
revenue notes and revenue bonds and of the trustee and
restrict the individual right of action by the holders of
such revenue notes and revenue bonds, and (d) contain
whatever other provisions are deemed reasonable and
proper for the security of the holders of such revenue
notes and revenue bonds; providing that all or a portion
of such revenue notes and revenue bonds may be refunded
pursuant to a subsequent ordinance of the City ; and gen-
erally providing for and determining various matters in
connection with the authorization, issuance, security, sale
and payment of such revenue obligations for the Summit
Keep Residential Development Program (as defined in
this ordinance) .
RECITALS
A. Subsection (51) — Loans to Facilitate Low and
Moderate Cost Residential ^Mortgage Financing Within
the City, of Article II of the Charter of Baltimore City
(1964 Revision, as amended) (''Subsection 51") author-
izes Mayor and City Council of Baltimore (the "City") to
borrow mone}" by the issuance and sale of its revenue
notes and revenue bonds and to utilize the proceeds of the
notes and bonds to develop an owner-occupancy residential
mortgage loan program in the City of Baltimore, ^lary-
land (''Baltimore") to provide readily available sources of
money at low and moderate cost for such residential
mortgage loans within Baltimore through the purchase,
contracting to purchase or other acquisition of mortgage
loans (i) bearing interest rates below those generally
prevailing (at the time of purchase or contract to pur-
chase) in the private mortgage market (to the extent
such a market exists at that time) for loans of compara-
ble quality and term in Baltimore and (ii) having what-
ORDINANCES 1569
ever other terms and characteristics as may be deter-
mined by the City. Subsection (51) requires that revenue
notes and revenue bonds authorized thereunder shall be
issued pursuant to Subsection (50) — Revenue Bonds
and Obhgations, of the Charter of Baltimore City (1964
Revision, as amended) .
B. Subsection (50) — Revenue Bonds and Obhgations
of Article II of the Charter of Baltimore City (1964 Re-
vision, as amended) (''Subsection (50)") authorizes the
City to borrow money through the issuance and sale of
its revenue notes and revenue bonds for the accomplish-
ment of any of the purposes, objects and powers of the
City. Revenue notes and revenue bonds issued pursuant
to Subsection (50) shall be payable, as to both principal
and interest, solely from and secured solely by (i) the
revenues from or arising in connection with the property,
facilities, developments and improvements whose financ-
ing is undertaken bj^ issuance of the notes or bonds, (ii)
the revenues from or arising in connection with any con-
tracts, mortgages or other securities purchased or other-
wise acquired with the proceeds of the notes or bonds,
(iii) the contracts, mortgages or other securities pur-
chased or otherwise acquired with the proceeds of the
notes or bonds, or (iv) any combination of (i), (ii) or
(iii).
C. Subsection (50) further authorizes the City to
authorize and empower the Board of Finance of the City
by resolution (i) to determine and set forth certain mat-
ters pertaining to the revenue notes and revenue bonds,
including (without limitation) the forms, terms, provi-
sions, manner or method of issuing and selling (including
negotiated as well as competitive bid sale), and the time
or times of issuance and any and all other details of such
revenue notes or revenue bonds, (ii) to do any and all
things necessary, proper or expedient in connection with
the issuance and sale of such revenue notes or revenue
bonds, and (iii) to approve the form of a trust agreement
between the City and the trustee, which trust agreement
may (a) pledge or assign all or any part of the security
for such notes or bonds, (b) contain reasonable and
proper provisions for the protection and enforcement of
the rights and remedies of the holders of such notes or
bonds, (c) set forth the rights and remedies of the hold-
1570 ORDINANCES Ord. No. 484
ers of such notes or bonds and of the trustee and restrict
the individual rights of action by the holders of the notes
or bonds, and (d) contain whatever other provisions are
deemed reasonable and proper for the security of the
holders of such notes or bonds.
D. Subsection (51) and Subsection (59) are referred
to herein collectively as the "Enabling Laws".
E. Subsection (41) declares, among other things, that
borrowing money thereunder by the issuance of revenue
notes or revenue bonds shall be for the essential pubhc
purpose of (i) preserving a healthy and viable economy
within Baltimore, (ii) encouraging and facilitating the
creation or maintenance of a healthy and ready market
for residential real estate in Baltimore, including (with-
out limitation) the ready sale and purchase of existing
residential real estate and the purchase, acquisition, con-
struction, erection or development of buildings or struc-
tures for owner-occupied residential purposes, including
any land necessary therefor, within the boundaries of
Baltimore, (iii) encouraging and facilitating the pur-
chase of residential real property in Baltimore in order
to maintain and encourage growth in real property assess-
ments in Baltimore, and (iv) preserving the public
health, safety and welfare of the residents of Baltimore
by enabling residents of Baltimore of all income levels to
finance readily their housing needs in Baltimore, thus
discouraging the proliferation of vacant and substandard
housing in Baltimore and retarding or reversing the
movement of financially self sufficient taxpayers to sur-
rounding subdivisions.
F. The Project Area of the Summit Keep Residential
Development Program shall be located in the City of
Baltimore at the northeast corner of the intersection of
IvjTnount Road and Rogene Drive. Consisting of single
family residential dwelling units incuding but not limited
to townhouse, condominiums, cooperatives, or other resi-
dential structures.
G. As part of the development of the Summit Keep
Area, the City seeks to promote owner-occupied residen-
tial units within Baltimore and the Summit Keep Area
offering a variety of good housing accommodations in an
attractive environment (such program as it may have
ORDINANCES 1571
heretofore or may hereafter be amended, or supplemented
or extended to other areas from time to time called the
"Summit Keep Residential Development Program").
H. Pursuant to the Summit Keep Residential Devel-
opment Program, the City proposes to provide necessary
construction financing as determined from time to time
(such program as it may have heretofore or may here-
after be amended, supplemented or extended to other
areas from time to time called the ''Summit Keep Resi-
dential Construction Loan Program" for developers and
builders (herein ''developers"), and necessary long-term
mortgage financing (such program as it may have here-
tofore or may hereafter be amended, supplemented or
extended to other areas from time to time called "Sum-
mit Keep Residential Mortgage Loan Program") for pur-
chasers (herein "mortgagors") of residential units in the
Project Area through several issues of the City's revenue
notes and revenue bonds.
I. Pursuant to the Enabling Lav^s, the City has deter-
mined to issue and sell in an amount not to exceed
$2,500,000, aggregate principal amount of its "Single-
Family Construction Mortgage Revenue Notes (Summit
Keep Loan Program)", (the "Notes") and to use the pro-
ceeds of the Notes to provide construction financing for
development of an owner-occupancy residential loan pro-
gram for the Summit Keep Residential Development Pro-
gram which loan program will include (without limita-
tion) the financing of construction loans for the developer.
J. Pursuant to the Enabling Laws, the City has deter-
mined to issue and sell in an amount not to exceed
$3,000,000, aggregate principal amount of its "Single-
Family Mortgage Revenue Bonds (Summit Keep Loan
Progi-am)", (the "Bonds") and to use the proceeds of
the Bonds, to develop an owner-occupancy residential
loan program for the Summit Keep Residential Develop-
ment Program, which loan program will include (without
limitation) the financing of mortgage loans for the
Mortgagors.
K. The City has determined to issue and sell the Notes
and the Bonds to effectuate the public purpose of (i)
preserving a healthy and viable economy within Balti-
1572 ORDINANCES Ord. No. 484
more, (ii) encouraging and facilitating the creation or
maintenance of a healthy and ready market for residen-
tial real estate in Baltimore, including (without limita-
tion) the ready sale and purchase of existing residential
real estate and the purchase, acquisition, construction,
erection or development of buildings or structures for
owner-occupied residential purposes, including any land
necessary therefor, within the boundaries of Baltimore,
(iii) encouraging and facilitating the purchase of resi-
dential real property in Baltimore in order to maintain
and encourage growth in real property assessments in
Baltimore, and (iv) preserving the public health, safety
and welfare of the residents of Baltimore by enabling
residents of Baltimore of all income levels to finance
readily their housing needs in Baltimore, thus discourag-
ing the proliferation of vacant and substandard housing
in Baltimore and retarding or reversing the movement of
financially self sufficient taxpayers to surrounding sub-
divisions.
L. Pursuant to authority provided in Article XI-H of
the Constitution of Maryland and laws enacted pursuant
thereto, the City from time to time has general funds
available for use to make or contract to make or to guar-
antee or insure financial loans to any person or other legal
entity to be used for or in connection with the purchase,
acquisition, construction, erection or development of
buildings or structures, including any land necessary
therefor, within the boundaries of Baltimore, which
buildings or structures are to be used or occupied for
residential purposes. Pursuant to such authority, or as
otherwise may be permitted by applicable law, the City,
acting through the Department of Housing and Commu-
nity Development of the City and the Board of Estimates
of the City, may determine from time to time to make,
guarantee or insure financial loans in connection with the
owner-occupied residential units for the Project Ai'eas to
supplement the proceeds of the Notes and Bonds to de-
velop the Summit Keep Residential Construction Loan
Program and the Summit Keep Residential Mortgage
Loan Program as an integral part of the Summit Keep
Residential Development Program.
iM. The City has determined to use, in part, the pro-
ceeds of the Bonds to provide mortgage financing to the
ORDINANCES 1573
purchasers of the owner-occupied residential units in the
Project Areas pursuant to the Inner Harbor Residential
Development Program by making loans to finance such
purchases.
Section 1. Be it ordained by Mayor and City Council of
Baltimore, That, acting pursuant to the Enabling Laws, it
is hereby found and determined, as follows :
(1) The issuance of revenue notes and revenue bonds
by the City pursuant to the Enabling Laws to develop the
Summit Keep Residential Construction Loan Program and
the Summit Keep Residential Mortgage Loan Program each
as a part of the Summit Keep Residential Development Pro-
gram in Baltimore through the purchase, contracting to
purchase or other acquisition of mortgage loans (i) bearing
interest rates below those generally prevailing (at the time
of purchase or contract to purchase) in the private mort-
gage market (to the extent such a market exists at that
time) for loans of comparable quality and term in Baltimore
and (ii) having the terms and characteristics as determined
by this ordinance and the Board of Finance acting pursuant
to this ordinance, will encourage and facilitate the purchase
of residential property in the Project Area by residents of
Baltimore of all income levels.
(2) The accomplishment of the transactions contem-
plated and authorized by this ordinance, including (without
Hmitation) the development of the Summit Keep Residential
Construction Loan Program and the Summit Keep Residen-
tial Mortgage Loan Program, will accomplish a public pur-
pose and meet existing public needs by (i) preserving a
healthy and viable economy within Baltimore, (ii) encour-
aging and facilitating the creation or maintenance of a
healthy and ready market for residential real estate in
Baltimore, including (without limitation) the ready sale
and purchase of existing residential real estate and the pur-
chase, acquisition, construction, erection or development of
buildings or structures for owner-occupied residential pur-
poses, including any land necessary therefor, within the
boundaries of Baltimore City, (iii) encouraging and facili-
tating the purchase of residential real property in Baltimore
in order to maintain and encourage growth in real property
assessments in Baltimore, and (iv) preserving the public
health, safety and welfare of the residents of Baltimore by
1574 ORDINANCES Ord. No. 484
enabling residents of Baltimore of all income levels to
finance readily their housing needs in Baltimore, thus dis-
couraging the proliferation of vacant and substandard hous-
ing in Baltimore and retarding or reversing the movement
of financially self sufficient taxpayers to surrounding sub-
divisions.
(3) Neither notes or bonds nor interest coupons
issued under the authority of the Enabhng Laws constitute
(i) a debt or general obligation of the City or any other
political subdivisions, or (ii) a pledge of or an involvement
of the faith and credit or the taxing powers of the City or
any other political subdivision, all within the meaning of
Section 7 of Article XI of the Constitution of Maryland or
any other constitutional, statutory or charter provision. The
principal of and interest on the Notes and Bonds shall be
payable from, and secured by, (i) an assignment of pay-
ments, proceeds, charges, rents and any other income or
payments (except certain escrow payments) to be derived in
cash by or for the account of the City from or related to the
the Summit Keep Residential Construction Loan Program
and the Summit Keep Residential Mortgage Loan Progi'am,
including (without limitation) payments (as determined
by resolution of the Board of Finance adopted pursuant to
this ordinance) of principal and interest on construction
mortgage loans made by the City to the developer of owner-
occupied residential units in the Summit Keep Residential
Development Program and on mortgage loans made by the
City to Mortgagors (all such income or payments called the
''Revenue Note and Bond Loan Program Revenues") and
(ii) (to the extent provided by resolution of the Board of
Finance adopted pursuant to this ordinance) proceeds of
the Notes and Bonds. The principal of and interest on the
Notes shall be secured by (without limitation) construction
mortgages from the developer in connection with the Summit
Keep Residential Construction Loan Program (the "Con-
struction Mortgages"). The principal of and interest on the
Bonds shall be secured by (without limitation) mortgages
from Mortgagors in connection with the Summit Keep
Residential Mortgage Loan Program (the "Unit Mortgages") .
The Notes and Bonds may be additionally secured (without
in any way specifying or limiting the terms of such addi-
tional security) by (i) insuring all or a part of the Unit
Mortgages by private mortgage insurance provided by one or
ORDINANCES 1575
more private mortgage insurers selected by the Board of
Finance; or (ii) insuring all or a part of the Unit Mortgages
through the Maryland Housing Fund or such other Federal,
State or municipal fund or other agency permitted by
applicable law to perform such insuring functions; or (iii)
assigning the proceeds of the mortgage insurance to the
trustee for the holders of the Notes and Bonds (the *'Bond-
holders") ; or (iv) such other security as the Board of
Finance may by resolution approve; or (v) any combination
of (i), (ii), (iii) and (iv).
The principal amount of the Notes and Bonds will be paid
directly to, and will be disbursed by, the independent trustee
or trustees appointed by the Board of Finance pursuant to
this ordinance (the ''Ti^ustee"). No such moneys will be
either commingled with the City's general funds or made
subject to the absolute control of the City, except for such
limited supervision and checks as are deemed necessary or
desirable by the City to insure that the proceeds of the
Notes and Bonds are used to accomplish the public purposes
of the Enabling Laws and this ordinance. The Revenue Note
and Bond Loan Program Revenues, in the case of construc-
tion financing for the developer, will be paid by the developer
to the Trustee as servicer for the Construction Mortgages or
as Trustee for the Summit Keep Residential Construction
Loan Program, as stipulated in the construction loan agree-
ment or agreements to be entered into by the City with an
agent, or agents, for construction loan servicing of the
Construction Mortgages. The Revenue Note and Bond Loan
Program Revenues, in the case of financing for Mortgagors,
will be paid by the Mortgagors to the mortgage servicer or
servicers for the Summit Keep Residential Mortgage Loan
Program, as stipulated in the servicing agreement or agree-
ments to be entered into by the City with a servicing agent
or agents for the Unit Mortgages, and the Revenue Note and
Bond Loan Program Revenues, less the servicing fee to be
approved by the Board of Finance, shall be paid by such
servicer to the Trustee. The transactions authorized hereby
do not constitute a public improvement or a capital project
within the meaning of any charter or statutory provision.
The public purposes expressed in this ordinance are intended
to be achieved by providing residential low and moderate
cost mortgage construction loans to the developer of the
Summit Keep Residential Development Program and resi-
1576 ORDINANCES Ord. No. 484
dential low and moderate cost mortgage loans to the
Mortgagors, each within Baltimore; preserving a healthy
economy within Baltimore; fostering a healthy market for
residential real estate in Baltimore; fostering the purchase
of residential real property in Baltimore and providing
affordable housing v/ithin Baltimore, thus discocuraging the
movement of taxpayers to surrounding subdivisions.
Sec. 2. And be it further ordained, That, the issuance,
sale and delivery of not exceeding $2,500,000, aggregate
principal amount of revenue notes, hereby designated
''Single-Family Construction Mortgage Revenue Notes
(Summit Keep Loan Program)", and the issuance, sale and
delivery of not exceeding $3,000,000, aggregate principal
amount of revenue bonds, hereby designated ''Single-Family
Mortgage Revenue Bonds (Summit Keep Loan Program)"
are hereby authorized, subject to the provisions of this
ordinance, the proceeds to be used to develop the Summit
Keep Residential Construction Loan Program and the Sum-
mit Keep Residential Mortgage Loan Program as a part of
the Summit Keep Residential Development Program, all as
set forth in this ordinance. In addition to the disbursement
of Note and Bond proceeds for construction loans and
mortgage loans under the Summit Keep Residential Con-
struction Loan Program and the Summit Keep Residential
Mortgage Loan Program, Note and Bond proceeds may be
disbursed (without limitation) (i) with respect to construc-
tion loans, to pay all costs of planning, development and
construction of the owner-occupied residential units for the
Summit Keep Residential Development Program including
(without limitation) architect's and engineers' fees and
expenses, commitment fees, title insurance and recordation
fees and taxes, land costs, land development costs, interest
during the construction period, construction materials and
equipment, construction contracting services and payment
and performance bonds, (ii) to pay the cost of issuance and
sale of the Notes and Bonds, including (without limitation)
costs of printing Notes and Bonds, the official statement and
other legal documents, costs of delivery of the Notes and
Bonds, commitment fees, legal fees, accounting fees, under-
writing costs, advertising costs, costs of rating agency re-
views and all other incidental related expenses and (iii) (to
the extent provided by resolution of the Board of Finance
ORDINANCES 1577
adopted pursuant to this ordinance) to fund a debt service
reserve or other reserve funds for the Notes and Bonds. The
Notes and Bonds shall be solely and exclusively payable from
the Revenue Note and Bond Loan Program Revenues and
(to the extent provided by resolution of the Board of
Finance adopted pursuant to this ordinance) certain Note
and Bond proceeds. The Notes and Bonds shall be secured
(to the extent provided by resolution of the Board of
Finance adopted pursuant to this ordinance) by (without
limitation) the Construction Mortgages and the Unit
Mortgages. The Board of Finance may require, however,
that the Notes and Bonds be additionally secured by (i)
insuring the Construction Mortgages and Unit Mortgages
through private mortgage insurance provided by one or
more private mortgage insurers selected by the Board of
Finance; or (ii) insuring the Construction Mortgages and
Unit Mortgages through the Maryland Housing Fund or
such Federal, State, or municipal fund or other agency per-
mitted by applicable law to perform such insuring functions ;
or (iii) assigning the proceeds of the mortgage insurance to
the Trustee for the Bondholders; or (iv) such other security
as the Board of Finance may approve ; or (v) any combina-
tion of (i), (ii), (iii) and (iv). The aggregate principal
amount of Notes issued, sold and delivered pursuant to this
ordinance shall not exceed $2,500,000, and the aggregate
principal amount of the Bonds issued, sold and dehvered
pursuant to this ordinance shall not exceed $3,000,000, unless
such amount or amounts, in each case, shall be increased
by an ordinance of the City supplemental hereto. The City
contemplates that, because of inflation and other factors
which may occur during the development and construction
periods of the Project Area, the City will amend or supple-
ment this ordinance from time to time to increase such
am.ounts or otherwise to provide for matters affecting the
Summit Keep Residential Developm.ent Program. Nothing in
this ordinance is intended or shall be deemed to exclude the
issuance of refunding bonds to refund all or a portion of the
Notes or Bonds, and the adoption of a subsequent ordinance
or ordinances for such purpose is expressly contemplated by
this ordinance.
In accordance with the Enabling Laws, the City hereby
authorizes the Board of Finance, unless the City shall other-
wise prescribe prior to the issuance and delivery of the
1578 ORDINANCES Ord. No. 484
Notes or Bonds, by resolution to take the following actions
and to make the following commitments on behalf of the
City:
(a) to determine and set forth the form, terms, provi-
sions (including redemption provisions and sinking fund
requirements, if any), manner or method of issuing and
selling (including negotiated or competitive bid sale) and
the time or times of issuance and any and all other details
of the Notes and Bonds ;
(b) to determine and set forth the form, terms and pro-
visions of construction loan agreements, servicing agree-
ments and all other construction and mortgage loan and
other documents in connection with the Notes and Bonds;
(c) to prepare and distribute, in conjunction with the
prospective underwriters or placement agents, if any, for
the Notes and Bonds, preliminary and final official state-
ments or placement memoranda or circulars as the Board of
Finance deems necessary and appropriate in connection with
the sale of the Notes and Bonds; provided, however, that
any such preliminary official statements or placement
memoranda or circulars shall be clearly marked to indicate
that they are subject to completion and amendment;
(d) to determine the dates, times and places when an
underwriting or placement agreement or purchase contract
shall be submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds, such underwriting or placement agreement or pur-
chase contract to specify the interest rate or rates proposed
to be paid on the Notes and Bonds, the price at which such
Notes and Bonds are to be sold to such underwriters, place-
ment agents or purchasers, and such other matters as the
underwriters, placement agents or purchasers and the Board
of Finance may deem necessary or desirable in order to effect
the sale and delivery of the Notes and Bonds ;
(e) to determine the interest rate or rates to be paid by
the City on the Notes and Bonds in accordance with the
proposed underwriting or placement agreement or purchase
contract submitted by the underwriters or placement agents
for the Notes and Bonds or purchasers of the Notes and
Bonds:
ORDINANCES 1579
(f ) to appoint, as the Board of Finance deems necessary
and appropriate, a bank having trust powers, or a trust
company, as trustee for the Notes and Bonds to be issued
pursuant to this ordinance ; and
(g) to approve the form of trust agreements between
the City and the Trustee, which trust agreements may (i)
pledge or assign all or any part of the security of the Notes
and Bonds, (ii) contain reasonable and proper provisions
for the protection and enforcement of the rights and
remedies for the Bondholders, (iii) set forth the rights and
remedies of the Bondholders and the Trustee and may re-
strict the individual right of action by the Bondholders,
and (iv) contain whatever other provisions are deemed
reasonable and proper for the security of the Bondholders.
The Board of Finance shall perform any and all actions
necessary or deemed appropriate by such Board in order to
effect the issuance and sale of the Notes and Bonds in
accordance with and pursuant to this ordinance and the
underwriting or placement agreements or purchase con-
tracts for the Notes and Bonds.
The Notes and Bonds shall be dates as of the first day of
the month next following the date on which the Notes and
Bonds are sold unless the Board of Finance shall specify a
different date by a resolution adopted pursuant to this
ordinance, and the Notes and Bonds shall bear interest at
an annual rate or rates payable semi-annually following
the date of the Notes and Bonds so that, if the Notes and
Bonds are dated October 1, 1981, interest on the Notes and
Bonds will be payable on March 1, 1982 and semi-annually
thereafter each October 1 and March 1 unless the Board of
Finance shall specify more frequent or different dates by a
resolution adopted pursuant to this ordinance.
The Notes and Bonds issued hereunder shall mature on
the date or dates provided in a resolution of the Board of
Finance adopted pursuant to this ordinance, but the last
maturity of each series of Notes shall in no event exceed a
period of five (5) years from the date of such series of
Notes and the last maturity of each series of the Bonds
shall in no event exceed a period of forty (40) years from
the date of such series of Bonds. If the resolution of the
Board of Finance does not provide any maturity of matur-
ities for the Notes, all of the Notes of a series shall mature
1580 ORDINANCES Ord. No. 484
on the date five (5) years from the date of such series of
Notes. For example, if the Note is dated September 30, 1981,
all of the Notes of such series will mature (in the absence
of a resolution of the Board of Finance determining other-
wise) on September 30, 1986. If the resolution of the Board
of Finance does not provide any maturity or maturities for
the Bonds, all of the Bonds of a series shall mature on the
date thirty-two (32) years from the date of such series of
the Bonds. For example, if the Bond is dated September 30,
1981, all the Bonds of such series will mature (in the
absence of a resolution of the Board of Finance determining
otherwise) on September 30, 2013.
Sec. 3. And be it further ordained, That, prior to the sale
of the Notes and Bonds, the Board of Finance, unless the
City shall otherwise prescribe, may determine by resolution :
(1) the provisions of trust betv/een the City and the
Trustees ;
(2) the manner of execution, authentication, registra-
tion and transfer of the Notes and Bonds ;
(3) provisions for authentication and delivery of the
Notes and Bonds ;
(4) the provisions of the Summit Keep Residential
Construction Loan Program and of the Summit Keep
Residential Mortgage Loan Program, including (i) the
terms of the construction loans and of the Construction
Mortgages acquired under the Summit Keep Residential
Construction Loan Program, (ii) the terms of the mortgage
loans and of the Unit Mortgages acquired under the Summit
Keep Residential Mortgage Loan Program, and (iii) the
terms of any servicing agreement between the City and a
mortgage servicer for the Construction Mortgages and the
Unit Mortgages ;
(5) the terms of the private insurance, public insurance
or other security for the Notes and Bonds ;
(6) provisions for creation, holding and disbursement
of a construction loan and a program fund to be held by the
Trustee ;
(7) provisions for creation, holding and disbursement of
any other funds and accounts to be held by the Trustee ;
ORDINANCES 1581
(8) provisions for the application of the Revenue Note
and Bond Loan Program Revenues ;
(9) provisions for the security for and investment of
moneys held by the Trustee ;
(10) the details of the procedure for the redemption of
the Notes and Bonds ;
(11) remedies for Bondholders in the event of default;
(12) the duties, rights and immunities of the Trustee;
(13) the manner of execution of instruments by Bond-
holders and the method of proof of ownership of the Notes
and Bonds ;
(14) provisions for modification of this ordinance;
(15) provisions for defeasance of the Notes and Bonds;
(16) the forms of the Notes and Bonds, coupons and the
Trustee's authentication certificate ; and
(17) such other matters in connection with the author-
ization, issuance, security, sale and payment of the Notes
and Bonds as may be deemed appropriate by the Board of
Finance.
Any resolution or resolutions adopted pursuant to this
ordinance shall be deemed to be of an administrative nature.
Sec. 4. And be it further ordained, That, the Board of
Finance may approve the issuance of the Notes and Bonds
in one or more series from time to time as the Board of
Finance by resolution adopted pursuant to this ordinance
deems necessary or appropriate in connection with the
schedule, as amended from time to time, of the Summit
Keep Residential Development Program. It is hereby de-
clared that singular terms shall include the plural and
plural the singular so that each provision of this ordinance
shall apply to each series of Notes and Bonds.
Sec. 5. And be it further ordained, That Mayor and City
Council may amend this ordinance from time to time as
necessary and appropriate to increase the authorization
for revenue notes and revenue bonds for the Summit Keep
Residential Development Program for increased costs or
other changes in the Summit Keep Residential Develop-
ment Program for the Project areas, or otherwise.
1582 ORDINANCES Ord. No. 485
Sec. 6. And be it further ordained, That, if any action
or any matter delegated to the Board of Finance, or au-
thorized for implementation by the Board of Finance, shall
not be acted upon by the Board of Finance, such actions
and matters may be acted upon or implemented by a reso-
lution approved by the City Council of the City, which is
subsequently approved by the Mayor or acting Mayor of
the City.
Sec. 7. And be it further ordained, That, the provisions
of this ordinance are severable, and if any provision, sen-
tence, clause, section or part thereof is held illegal, invalid
or unconstitutional or inapplicable to any person or circum-
stances, such illegality, invalidity or unconstitutionality, or
inapplicability shall not affect or impair any of the re-
maining provisions, sentences, clauses, sections, or parts
of this ordinance or its applications to other persons or
circumstances. It is hereby declared to be the legislative
intent that this ordinance would have been adopted if such
illegal, invalid or unconstitutional provision, sentence,
clause, section or part had not been included therein, and
if the person or circumstances to which this ordinance or
any part thereof is inapplicable had been specifically ex-
empted therefrom.
Sec. 8. And be it further ordained, That, this ordinance
shall take effect from the date of its passage.
Approved October 14, 1981.
WILLIAM DONALD SCHAEFER, Mayor.
No. 485
(Council No. 863)
AN ORDINANCE concerning
INDUSTRIAL DEVELOPMENT REVENUE BONDS
WASHINGTON HILL
RESIDENTIAL DEVELOPMENT PROGRAM
FOR the purpose of authorizing and providing for the
issuance, sale and delivery, by the Mayor and City Coun-
ORDINANCES 1583
cil of Baltimore (the ''City") of its revenue obligations
for the Washington Hill Residential Development Pro-
gram (as defined in this ordinance) consisting of its
revenue notes, to be used in part to pay the costs of
construction of residential units as described in this
ordinance, designated "Single-Family Construction
Mortgage Revenue Notes (Washington Hill Loan Pro-
gram)" in the aggregate principal amount not exceeding
$5,000,000, and of its revenue bonds, to be used in part
to provide mortgage financing for the purchasers of
owner-occupied residential units described in this ordi-
nance, designated ''Single-Family Mortgage Revenue
Bonds (Washington Hill Loan Program)" in the aggre-
gate principal amount not exceeding $4,500,000, each
pursuant to the provisions of Subsections (51) and (50)
of Article H of the Charter of Baltimore City (1964
Revision, as amended), in order to use the proceeds for
the sole and exclusive purpose of financing the Wash-
ington Hill Residential Construction Loan Program (as
defined in this ordinance) each as part of the Washing-
ton Hill Residential Development Program (as defined
in this ordinance) for the Project Areas within the
Washington Hill Area (each as defined in this ordi-
nance) in the City of Baltimore, including (without
limitation) the purchase, the contracting to purchase or
the acquisition of mortgage loans bearing interest rates
below those generally prevailing (at the time of pur-
chase or contract to purchase) in the private mortgage
market (to the extent such a market exists at that time)
for loans of comparable quality and term in the City of
Baltimore, as provided in this ordinance, for the public
purpose of developing readily available sources of money
at low and moderate cost for the Washington Hill Resi-
dential Development Program (as defined in this ordi-
nance) for the Project Areas within the Washington
Hill Area (each as defined in this ordinance) within the
City of Baltimore; making certain legislative findings,
among others, concerning the public benefit and purpose
of such revenue notes and revenue bonds ; providing that
(a) such revenue notes and revenue bonds shall be pay-
able solely and only from Revenue Note and Bond Loan
Program Revenues (as defined in this ordiance) and (to
the extent provided by resolution of the Board of
1584 ORDINANCES Ord. No. 485
Finance of the City adopted pursuant to this ordinance)
certain proceeds or such revenue notes and revenue
bonds and (b) such revenue notes and revenue bonds
shall not ever constitute, within the meaning of Section 7
of Article XI of the Constitution of Maryland or any
other constitutional, statutory or charter provision or
otherwise (i) a debt or general obligation of the City or
any other political subdivision or (ii) a pledge of or an
involvement of the faith and credit or the taxing powers
of the City or any other political subdivision; authoriz-
ing and empowering the Boar 
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